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Firm formation with heterogeneous management and labor skills

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Abstract

When both management skills and labor skills differ in the population, the nature of firm formation can differ radically from the equilibrium we are used to dealing with: The best potential managers could end up as wage workers. This happens when managerial skills are positively correlated with working skills, and there is some empirical evidence that this is indeed the case.

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Authors and Affiliations

  1. New York University, 269 Mercer Street, 7th Floor, 10003, New York, NY, USA

    Boyan Jovanovic (Professor of Economics)

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  1. Boyan Jovanovic
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Jovanovic, B. Firm formation with heterogeneous management and labor skills. Small Bus Econ 6, 185–191 (1994). https://doi.org/10.1007/BF01108287

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  • DOI: https://doi.org/10.1007/BF01108287

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