business creation in a world where new business owners are exposed to idiosyncratic risk due to initial imperfect … diversification. This paper uses this framework to analyze how entrepreneurial risk has changed over time and how this has affected … employment in the US. Conditions are provided under which entrepreneurial risk can be identified using micro data on the size …

. Enterprise formation is subject to future market risk and is shaped by labor market institutions in the post-entry stage. The …

We provide empirical evidence that uncertainty (rather than risk) and optimism are distinctive characteristics of high …