Entrepreneurship turnover and endogenous returns to ability - HAL-SHS - Sciences de l'Homme et de la Société
Article Dans Une Revue Economic Modelling Année : 2008

Entrepreneurship turnover and endogenous returns to ability

Résumé

This paper proposes a model of entrepreneurial turnover highlighting a non-monotone relationship between technological change and ability-biased sorting into entrepreneurial types. Entrepreneurial decisions are examined in a two-stage model under uncertainty in which entrepreneurs decide to abandon a project and start a new venture depending on technological change and on ability. We show that technological change affects the quality distribution of entrepreneurship by increasing the ex-ante number of entrepreneurs undertaking the most efficient projects and decreasing the post-entry number of entrepreneurs of low-quality firms who choose to continue their initial business. A higher rate of technological change is therefore likely to induce a cleansing effect on entrepreneurial activity and to alter the market perception of business creation.
Fichier principal
Vignette du fichier
CrifoSamiMANUSCRIPT_ECOMOD.pdf (238.65 Ko) Télécharger le fichier
Origine Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

halshs-00522814 , version 1 (01-10-2010)

Identifiants

Citer

Patricia Crifo, Hind Sami. Entrepreneurship turnover and endogenous returns to ability. Economic Modelling, 2008, 25 (4), pp.585-604. ⟨10.1016/j.econmod.2007.10.005⟩. ⟨halshs-00522814⟩
327 Consultations
277 Téléchargements

Altmetric

Partager

More