Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/158516
Authors: 
Salas-Fumás, Vicente
Sanchez-Asin, J. Javier
Storey, David J.
Year of Publication: 
2014
Citation: 
[Journal:] SERIEs - Journal of the Spanish Economic Association [ISSN:] 1869-4195 [Volume:] 5 [Year:] 2014 [Issue:] 1 [Pages:] 1-24
Abstract: 
This paper extends the (Lucas, Bell J Econ 9:508-523,1978) model of occupational choices by individuals with different skills, beyond the simple options of self-employment or wage-employment, by including a second choice for the self-employed. That is, an option to hire employees and so become self-employed with employees (SEWEs), or to be self-employed without employees (SEWNEs). We solve for the market equilibrium and examine the sensitivity of relative sizes of occupational groups, and of the level of productivity, to changes in the exogenous parameters. The results show that the positive (negative) association between number of SEWEs (SEWNEs) and productivity, observed in the Spanish data, can be explained, under certain conditions, as the result of cross-region and time differences in average skills. These findings point to the importance of distinguishing between SEWEs and SEWNEs in drawing valid conclusions concerning any link between entrepreneurship and economic development.
Subjects: 
Occupational choice
Self-employment
Entrepreneurship
Entrepreneurial skills
Spanish economy
JEL: 
J24
L26
D24
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/2.0/
Document Type: 
Article

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