Nobody ’ s Business but My Own : Self Employment and Small Enterprise in Economic Development

  title={Nobody ’ s Business but My Own : Self Employment and Small Enterprise in Economic Development},
  author={Douglas Gollin},
In most poor countries, small firms and self employment are the dominant forms of business enterprise – even in the manufacturing sector. For rich countries, in contrast, self-employed people account for very small shares of manufacturing employment and output. This paper builds on Lucas (1978) to ask whether structural changes of this kind are driven by productivity differences. A model, calibrated to Japanese time series data, is shown to mimic key features of cross-country and time series… CONTINUE READING

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