Financial constraints and entrepreneurship are among the key factors affecting economic performance in developing countries. Emphasizing the link between the theory microfoundations and the data, the paper considers a heterogeneous agents model of occupational choice with moral hazard under three Þnancial contract regimes differing in their degree of market incompleteness: savings only, borrowi...

This paper examines occupational choices using a discrete choice model that accounts for the fact that self-reported occupation data is measured with error. Despite evidence from validation studies which suggests that there is a substantial amount of measurement error in self-reported occupations, existing research has not corrected for classi…cation error when estimating models of occupational...

The paper tries to relate inequality, occupational choice and long run wealth. Defining the unskilled as poor, skilled group as middle class and entrepreneurs as rich the paper focusesstarting from a huge middle class relative to the rich along with a higher fraction of borrowing entrepreneurs within the rich group, an economy converges with a very low wealth level. In other words, one needs to...

This paper seeks to quantify two important sources of workers’ wage growth skill accumulation and occupational human capital by constructing and estimating a structural occupational choice model. Accumulated skills are assumed to be more transferable between jobs that utilize similar tasks. Unlike previous work, I allow task usage to vary not only by occupation, but also by hierarchical level w...

The shortage of occupational therapists specializing in mental health led to a survey of graduates from nine occupational therapy schools in the New York metropolitan area to determine the factors affecting their specialty choice. The variables examined were derived from a literature review of the specialty choice of psychiatry among medical students. They included personality, academic, clinic...

This paper examines the steady states of an overlapping generations economy with a given distribution of household locations over a one-dimensional interval. Parents decide whether or not to educate their children. Educational decisions are affected by location: There are local complementarities in investment incentives stemming from aspirations formation, learning spillovers, or local public g...

We study an overlapping generations version of the principal-agent problem, where incentive contracts are determined in general equilibrium. All individuals are workers when young, but have a choice between becoming entrepreneurs or remaining workers when old. Imperfections in the credit market give rise to rents in entrepreneurial activities involving capital. These rents motivate poor young a...