Entrepreneurship, Wage Employment and Control in an Occupational Choice Framework

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 805

Classification and Topics

• Classification: Wirtschaft ; Education and Research Institutions: General ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials ; Entrepreneurship
• Subject: Entrepreneurship ; Ability ; Occupational Choice ; Human Capital ; Wage Structure ; Berufswahl ; Entrepreneurship-Ansatz ; Selbstständige ; Angestellte ; Humankapital ; Lohnstruktur ; Bildungsertrag ; Allgemeines Gleichgewicht ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Douhan, Robin ; van Praag, Mirjam
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/81393
• Last update: 10.03.2025, 11:43 AM CET