Firm Formation with Heterogeneous Management and Labor Skills

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Firm Formation with Heterogeneous Management and Labor Skills

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Jovanovic, Boyan

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Boyan Jovanovic

Abstract

When both management skills and labor skills differ in the population, the nature of firm formation can differ radically from the equilibrium we are used to dealing with: The best potential managers could end up as wage workers. This happens when managerial skills are positively correlated with working skills, and there is some empirical evidence that this is indeed the case. Copyright 1994 by Kluwer Academic Publishers

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Article provided by Springer in its journal Small Business Economics.

Volume (Year): 6 (1994)
Issue (Month): 3 (June)
Pages: 185-91
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Handle: RePEc:kap:sbusec:v:6:y:1994:i:3:p:185-91

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Michael Kremer & Eric Maskin, 1996. "Wage Inequality and Segregation by Skill," NBER Working Papers 5718, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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- Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
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- GABSZEWICZ, Jean & LAUSSEL, Didier, 2003. "Increasing returns, entrepreneurship and imperfect competition," CORE Discussion Papers 2003044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
Audretsch, David B & Bönte, Werner & Tamvada, Jagannadha Pawan, 2007. "Religion and Entrepreneurship," CEPR Discussion Papers 6378, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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Roy Thurik & Isabel Grilo, 2005. "Determinants of entrepreneurial engagement levels in Europe and the US," Papers on Entrepreneurship, Growth and Public Policy 2005-25, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
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- Isabel Grilo & Roy Thurik, 2007. "Determinants of entrepreneurial engagement levels in Europe and the US," Papers on Entrepreneurship, Growth and Public Policy 2007-02, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
- Isabel Grilo & Roy Thurik, 2008. "Determinants of entrepreneurial engagement levels in Europe and the US," Industrial and Corporate Change, Oxford University Press, vol. 17(6), pages 1113-1145, December. [Downloadable!] (restricted)
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Ariel Burstein & Alexander Monge-Naranjo, 2007. "Foreign Know-How, Firm Control, and the Income of Developing Countries," NBER Working Papers 13073, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Jan Eeckhout & Boyan Jovanovic, 2007. "Occupational Choice and Development," NBER Working Papers 13686, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Koen De Backer & Leo Sleuwaegen, 2002. "Does foreign direct investment crowd out domestic entrepreneurship?," Vlerick Leuven Gent Management School Working Paper Series 2002-14, Vlerick Leuven Gent Management School. [Downloadable!]
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Thomas Astebro & Jing Chen & Peter Thompson, 2008. "Stars and Misfits: A Theory of Occupational Choice," Working Papers 0803, Florida International University, Department of Economics. [Downloadable!]
Sarah Brown & Lisa Farrell & Mark N. Harris & John G. Sessions, 2002. "Risk Preference And Employment Contract Type," Department of Economics - Working Papers Series 845, The University of Melbourne. [Downloadable!]
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Isabel Grilo & Jesus Maria Irigoyen, 2005. "Entrepreneurship in the EU: to wish and not to be," Papers on Entrepreneurship, Growth and Public Policy 2005-01, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
Erik Stam & David Audretsch & Joris Meijaard, 2006. "Renascent Entrepreneurship - Entrepreneurial Preferences Subsequent to Firm Exit," Papers on Entrepreneurship, Growth and Public Policy 2006-06, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
Nykvist, Jenny, 2008. "The Effects of Displacement on Self-employment Survival," Working Paper Series 764, Research Institute of Industrial Economics. [Downloadable!]
Koen de Backer, 2002. "Does Foreign Direct Investment Crowd Out Domestic Entrepreneurship?," Economics Working Papers 618, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
Stam, F.C. & Audretsch, D.B. & Meijaard, J., 2006. "Renascent Entrepreneurship," Research Paper ERS-2006-017-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
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