Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)
Hans K. Hvide
Firm Size and the Quality of Entrepreneurs
Abstract: A theory is proposed where the pay policy and size of
established firms are determined together with individual workers'
entrepreneurship decision. The main results are twofold. First, taking the
firm size as given, larger firms tend to have less flexible wages and
produce entrepreneurs of higher quality than small firms. Second, making
firm size edogenous, we find that stronger property rights makes the
optimal firm size larger (and the average quality of entrepreneurs higher).
To illustrate the theory, we consider two sources of evidence: data on the
quality of entrepreneurs from a survey of Stanford MBA alumnus, and the
evolution of firm size in the U.S. Software Industry after a recent
strengthening in software patent protection. Both hypotheses receive
Keywords: Entrepreneurship; Innovation; IPP; Private benefits; Property Rights; Spin-offs; Start-ups; (follow links to similar papers)
JEL-Codes: L26; (follow links to similar papers)
51 pages, June 4, 2004
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Stein Fossen ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom