We propose and estimate a novel specification of the labor demand curve incorporating search frictions and the role of entrepreneurs in new firm creation. Using city-industry variation over four decades, we estimate the employment - wage elasticity to be -1 at the industry-city level and -0.3 at...

How does welfare affect the prosperity of mothers and their children? We study this question using a Canadian welfare reform and by linking administrative welfare records to tax returns, nearly all medical spending, and children's educational attainment. Eighty percent of mothers in the complier...