This paper compares the information content of the number of persons self-employed with the number of active firms, as measures of the entrepreneurial resources of an economy. Our purpose is to examine whether the two variables respond equally to the same potential sources of variability...

This paper extends the (Lucas, Bell J Econ 9:508-523,1978) model of occupational choices by individuals with different skills, beyond the simple options of self-employment or wage-employment, by including a second choice for the self-employed. That is, an option to hire employees and so become...

In this paper we extend models of market equilibrium from binary occupational choices of people with different entrepreneurial ability, to the realistic case that entrepreneurs can decide whether they hire workers and become employers or whether they become own account self-employed. We find...