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Wage Inequality and Entrepreneurship

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  • Federico De Francesco

    (University of California Los Angeles)

Abstract

increase the relative supply of skilled workers and thus decrease their relative price. I formalize this idea in an occupational choice model. A quantitative exercise suggests that the proposed mechanism can account for about one third of the observed cross country differences in the skill premium.

Suggested Citation

  • Federico De Francesco, 2010. "Wage Inequality and Entrepreneurship," 2010 Meeting Papers 959, Society for Economic Dynamics.
    • Handle: RePEc:red:sed010:959
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