Risk, Entrepreneurship and Human Capital Accumulation

Board of Governors of the Federal Reserve System Finance and Econ. Disc. Series 97-37

25 Pages Posted: 4 Mar 1998

See all articles by Murat Iyigun

Murat Iyigun

University of Colorado at Boulder - Department of Economics; Harvard University - Center for International Development (CID); IZA Institute of Labor Economics

Ann L. Owen

Hamilton College - Economics Department

Date Written: July 1997

Abstract

Entrepreneurial human capital plays a relatively more important role in intermediate income countries, but professional human capital is relatively more abundant in richer economies. Because the return to entrepreneurship is risky, individuals devote less time to the accumulation of entrepreneurial skills and more to the accumulation of professional skills as per capita income grows. Countries that initially have too little of either entrepreneurial or professional skills may end up in a development trap. The steady state may be characterized by either too much or too little education.

JEL Classification: J24, O11, O40

Suggested Citation

Iyigun, Murat F. and Owen, Ann L., Risk, Entrepreneurship and Human Capital Accumulation (July 1997). Board of Governors of the Federal Reserve System Finance and Econ. Disc. Series 97-37, Available at SSRN: https://ssrn.com/abstract=53661 or http://dx.doi.org/10.2139/ssrn.53661

Murat F. Iyigun

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309
United States
303-492-6653 (Phone)
303-492-8622 (Fax)

Harvard University - Center for International Development (CID) ( email )

One Eliot Street Building
79 JFK Street
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ann L. Owen (Contact Author)

Hamilton College - Economics Department ( email )

198 College Hill Road
Clinton, NY 13323
United States
315-859-4419 (Phone)
303-859-4477 (Fax)

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