Full Citation

Title: Technical Change and Entrepreneurship

Citation Type: Miscellaneous

Publication Year: 2020

ISBN:

ISSN:

DOI: 10.2139/SSRN.3616568

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Abstract: I document a significant decline in the share of entrepreneurs among US households over the last three decades. Most of this decline is accounted for by a drop in the share of entrepreneurs among college graduates. Using a standard entrepreneurial choice model with two skill groups-high-and low-skill individuals-I then argue that the decline is the outcome of two technological forces that increased the returns to high-skill labor: the skill-biased technical change and the decrease in the price of capital. I find that these two forces account for three-quarters of the decline in the share of entrepreneurs.

Url: https://papers.ssrn.com/abstract=3616568

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Authors: Salgado, Sergio

Publisher: Elsevier BV

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

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