Inflation as a bad incentive to self-employment
Date
2018-05
Authors
Garibotti, Matías Julián
relationships.isContributorOfPublication
Weinschelbaum, Federico
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
This work develops an occupational choice model with the aim of studying the relationship between inflation and creation of self-employment. Particularly, it studies
the decision of an agent between being a waged employee or being an entrepreneur,
and how this decision changes according to the level of inflation in the economy. The
model distinguishes between two types of firm owners: low skilled (subsistence entrepreneurs) and high-skilled (transformational entrepreneurs). While the last ones
are thought to develop employment and economic growth, the first ones create their
firms to subsist. According to the model, inflation creates an incentive to start a
new firm for both types of entrepreneurs, but this effect is stronger for low-skilled
entrepreneurs. Finally, this incentive to entrepreneurship has a negative impact in
the economy.
Description
Fil: Garibotti, Matías Julián. Universidad de San Andrés. Departamento de Economía; Argentina.
Keywords
Citation
Garibotti, M. J. (2018). Inflation as a bad incentive to self-employment. [Tesis de grado, Universidad de San Andrés. Departamento de Economía]. Repositorio Digital San Andrés. http://hdl.handle.net/10908/18171