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Stars and Misfits: A Theory of Occupational Choice

Abstract : In some datasets, the self-employed earn markedly less than wage earners, even though those at the top end of the distribution earn more than their wage-earning peers. This observation is explained by a model of entrepreneurial choice that blends Lazear's [Journal of Labor Economics, vol. 23, pp. 649-680 (2005)] notion that entrepreneurs must be skilled in a variety of activities with the strong complementarity between skills central to Kremer's [Quarterly Journal of Economics, vol. 108, pp. 551-575 (1993)] O-ring theory of production. We test some predictions of the model using two datasets, with mixed results.
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https://hal-hec.archives-ouvertes.fr/hal-00655035
Contributor : Antoine Haldemann <>
Submitted on : Sunday, December 25, 2011 - 6:18:32 PM
Last modification on : Friday, October 19, 2018 - 11:36:02 AM

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  • HAL Id : hal-00655035, version 1

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Thomas B. Astebro, Jing Chen, Peter Thompson. Stars and Misfits: A Theory of Occupational Choice. 2010. ⟨hal-00655035⟩

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