TY  - RPRT
        AU  - Douhan, Robin
AU  - Praag, Mirjam C. van
        TI  - Entrepreneurship, Wage Employment and Control in an Occupational Choice Framework
        PY  - 2009/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4211
        UR  - https://www.iza.org/index.php/publications/dp4211
        AB  - We combine two empirical observations in a general equilibrium occupational choice model. The first is that entrepreneurs have more control than employees over the employment of and accruals from assets, such as human capital. The second observation is that entrepreneurs enjoy higher returns to human capital than employees. We present an intuitive model showing that more control (observation 1) may be an explanation for higher returns (observation 2); its main outcome is that returns to ability are higher in higher control environments. This provides a theoretical underpinning for the control-based explanation for higher returns to human capital for entrepreneurs.
        KW  - entrepreneurship
KW  - ability
KW  - occupational choice
KW  - human capital
KW  - wage structure
        ER  -