abstract: 'We propose a simple theory of endogenous firm productivity,

  unemployment, and top income inequality. High-talented individuals

  choose to become self-employed entrepreneurs and acquire more managerial

  (human) capital; whereas low-talented individuals become workers and

  face the prospect of equilibrium unemployment. In a two-country global

  economy, trade openness raises firm productivity, increases top income

  inequality, and may reduce welfare in the country exporting the good

  with lower relative labor-market frictions. Trade openness reduces firm

  productivity, lowers top income inequality, and necessarily raises

  welfare in the other country. The effect of trade on unemployment is

  ambiguous. Unilateral job-creating policies increase welfare in both

  countries. However, they reduce unemployment and raise top income

  inequality in the policy-active country; and reduce top income

  inequality while increasing unemployment in the policy-passive country.

  (C) 2015 Elsevier B.V. All rights reserved.'
affiliation: 'Dinopoulos, E (Corresponding Author), Univ Florida, Dept Econ, Gainesville,
  FL 32611 USA.

  Dinopoulos, Elias, Univ Florida, Dept Econ, Gainesville, FL 32611 USA.

  Unel, Bulent, Louisiana State Univ, Dept Econ, Baton Rouge, LA 70803 USA.'
author: Dinopoulos, Elias and Unel, Bulent
author-email: 'dinopoe@ufl.edu

  bunel@lsu.edu'
author_list:
- family: Dinopoulos
  given: Elias
- family: Unel
  given: Bulent
da: '2023-09-28'
doi: 10.1016/j.euroecorev.2015.07.010
eissn: 1873-572X
files: []
issn: 0014-2921
journal: EUROPEAN ECONOMIC REVIEW
keywords: Inequality; Managerial capital; Search and matching; Trade; Unemployment
keywords-plus: 'LABOR-MARKET RIGIDITIES; UNEMPLOYMENT; PRODUCTIVITY; TECHNOLOGY; WAGES;

  INEQUALITY; EXPORTS; IMPACT'
language: English
month: OCT
number-of-cited-references: '45'
pages: 93-112
papis_id: 347c864612282e5ff41beb5667ee4c41
ref: Dinopoulos2015entrepreneursjobs
times-cited: '12'
title: Entrepreneurs, jobs, and trade
type: article
unique-id: WOS:000363075000006
usage-count-last-180-days: '0'
usage-count-since-2013: '13'
volume: '79'
web-of-science-categories: Economics
year: '2015'