We study the effects of ability and liquidity constraints on entrepreneurship. We develop a three sector Roy model that … on entry into entrepreneurship. The model predicts--and the data confirm--that entrepreneurs are positively selected on … positively selected on collateral, but other self-employed are not; and entrepreneurship is procyclical, but self-employment is …

entrepreneurship. Previous work has recognized that workers may opt for self-employment due to the non-pecuniary benefits of running a … reveals that the personality traits that make entrepreneurship profitable are not always the same traits driving people to … open a business. This has important consequences for entrepreneurship policies. For example, subsidies for small businesses …

"illicit" tendencies as youths accounts for both entry into entrepreneurship and the comparative earnings of entrepreneurs. In …

How does consumer credit access impact job flows, earnings, and entrepreneurship? To answer this question, we build a … results suggest that consumer credit access matters for each stage of entrepreneurship and that credit-checks may be limiting …