This paper consists of an introductory survey of two fundamental questions regarding the link between entrepreneurship and economic growth. The first one deals with the endogenous relationship between entrepreneurship and growth. In particular, we suggest that, while more entrepreneurship could mean more economic growth, economic growth in turn could affect the individual arbitrage between diff...

This note analyses the interaction between nominal wage stickiness and costly employment adjustment in a small closed-economy New Keynesian model with simple rule-based or optimal monetary policy. The results show (1) the costs of nominal and real rigidity to depend on the policy regime, (2) optimal policy to substantially contain the welfare loss, and (3) the absence of quantitatively importan...

A Selection-Based Theory of the Transition from Employment to Entrepreneurship: The Role of Employer Size A simple occupational choice model is used to predict that entrepreneurs who found new firms are more likely to work for small than for large firms prior to start-up. The mechanism underlying the result is heterogeneous risk aversion. The model also predicts a positive association between n...

The purpose of this paper is to empirically analyze the factors that determine the timing of downsizing, focusing on which periods of positive profits or losses it is implemented in. We shed light on the factors concerning corporate finance, ownership structure and employer-employee attachments by employing a unique dataset. We reveal that the timing of downsizing depends on firms’ embeddeness ...

The theory of factor demand has important implications for the study of the impact of immigration on wages. This paper derives the theoretical implications in the context of a general equilibrium model where the wage impact depends on the elasticity of product demand, the rate at which the consumer base expands as immigrants enter the receiving country, the elasticity of supply of capital, and ...

This paper analyses the labour market transitions of unemployed individuals. We are particularly interested in why some individuals become self-employed instead of wage or salary earners upon returning to employment. Using Finnish microdata and a multinomial logit model we find that when we compare unemployed individuals ́ probability of moving into a wage or salary work with the probability of ...

Credible Research Designs for Minimum Wage Studies We assess alternative research designs for minimum wage studies. States in the U.S. with larger minimum wage increases differ from others in business cycle severity, increased inequality and polarization, political economy, and regional distribution. The resulting timevarying heterogeneity biases the canonical two-way fixed effects estimator. W...

evidence from iranian households’ expenditures and income survay(iheis) in urban area shows that, average of real hourly wage against the schooling years is declining in the right tail of wage distribution between 1384 and 1390 (2005 and 2011). a tentative justification for this observation is that the private rate of return to education at upper quantiles and higher years of schooling have red...

This paper develops a dynamic model of the labor market in which the degree of substitution between employment and hours of work is determined as part of a search equilibrium. Each firm chooses the demand for working hours and the number of vacancies, and the hourly wage rate is determined by Nash bargaining. A firm increases the demand for hours as recruitment becomes more costly. Labor market...