This study aims to identify the roles played by firm flexibility (FLEX) in the relationship between entrepreneurial … orientation (EO) and firm growth (FG) under different market conditions. In particular, it tests the mediating and moderating …

aggregate economy. Building a heterogeneous-firm directed search model where workers gradually learn about firm types, I find … firms. Reduced uncertainty or labor market frictions lower the wage differentials, thereby enhancing young firm dynamics and …

limited specialization, far below what is feasible given the prevailing production process and average firm size of 5 ….7 workers. We build and estimate an occupational choice model in which firm size, productivity, and specialization arise … be produced with an average firm size of only 1.6. …