Robin Boadway () (Department of Economics, Queen's University) Nicolas Marceau () (Center for Research on Economic Fluctuations and Employment, UQAM) Maurice Marchand () (IAG, Universite Catholique de Louvain, and CORE) Marianne Vigneault () (Department of Economics, Bishop's University)
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We examine how three sources of asymmetric information affect the supply of entrepreneurs and unemployment. In the first case, banks cannot observe entrepreneurs' risk of failure so ration credit. This increases the number of entrepreneurs and the level of unemployment. In the second case, firms cannot observe workers' effort so offer a wage above the market clearing one. This results in unemployment and too few entrepreneurs. The final case arises when firms cannot observe workers' abilities. A pooling wage is offered and results in too many entrepreneurs. The role of government in restoring efficiency is explored
Dans ce texte, nous étudions l'impact de trois formes d'asymétrie d'information sur l'entrepreneurship et le chômage. Dans le premier cas, les banques ne peuvent observer la probabilité qu'un entrepreneur fasse faillite, ce qui les conduit à restreindre l'accès au crédit. Cela cause un accroissement du nombre d'entrepreneurs et du chômage. Dans un deuxième cas, les firmes ne peuvent observer l'effort de leurs travailleurs et offrent alors un salaire d'efficience. D'un tel salaire résulte du chômage et un trop petit nombre d'entrepreneurs. Dans le dernier cas, les firmes ne peuvent observer l'habileté de leurs travailleurs. Un même salaire est alors offert à tous les travailleurs, ce qui conduit à un trop grand npmbre d'entrepreneurs. Nous étudions les formes d'intervention gouvernementale permettant d'accroître l'efficacité.
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Find related papers by JEL classification: H2 - Public Economics - - Taxation, Subsidies, and Revenue J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Marc Cowling & Mark Taylor & Peter Mitchell, 2004.
"Job Creators,"
Manchester School,
University of Manchester, vol. 72(5), pages 601-617, 09.
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