English, Article, Journal or magazine article edition: Entrepreneurship, Wage Employment and Control in an Occupational Choice Framework Robin Douhan; Mirjam van Praag

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Bookmark: http://trove.nla.gov.au/version/148168
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Entrepreneurship, Wage Employment and Control in an Occupational Choice Framework
Author
  • Robin Douhan
  • Mirjam van Praag
Physical Description
  • preprint
Notes
  • We combine two empirical observations in a general equilibrium occupational choice model. The first is that entrepreneurs have more control than employees over the employment of and accruals from assets, such as human capital. The second observation is that entrepreneurs enjoy higher returns to human capital than employees. We present an intuitive model showing that more control (observation 1) may be an explanation for higher returns (observation 2); its main outcome is that returns to ability are higher in higher control environments. This provides a theoretical underpinning for the control-based explanation for higher returns to human capital for entrepreneurs.
  • Entrepreneurship; Ability; Occupational Choice; Human Capital; Wage Structure
  • RePEc:dgr:uvatin:20090055
Language
  • English
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