This paper applies the techniques of stochastic optimal control to the problem of price-taking agents choosing the optimal balance between self-employment and paid employment. The two principal innovations are the development of an intertemporal optimizing model for heterogeneous agents under...

By associating mobility with the unpredictability of social states, new measures of social mobility may be constructed. We propose a family of three state-by-state and aggregate (scalar) predictability measures. The first set of measures is based on the transition matrix. The second uses a...