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Occupational choice, number of entrepreneurs and output: theory and empirical evidence with Spanish data
journal contribution
posted on 2023-06-15, 20:48 authored by Vicente Salas-Fumas, J Javier Sanchez-Asin, David StoreyThis 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.
History
Publication status
- Published
File Version
- Published version
Journal
SERIEs: Journal of the Spanish Economic AssociationISSN
1869-4187Publisher
Springer VerlagExternal DOI
Issue
1Volume
5Page range
1-24Department affiliated with
- Business and Management Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2015-12-07First Open Access (FOA) Date
2015-12-07First Compliant Deposit (FCD) Date
2015-12-07Usage metrics
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