Entrepreneurial risk and labour's share in output

Renato Cardoso

No 252, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

Abstract: This paper presents a theoretical model which discusses the role played by the entrepreneurial risk on the distribution of the national income. In a two-period general equilibrium framework with competitive risk-averse entrepreneurs it is shown that the highest the risk borne by firms, the lower will be real wages, employment and the labour's share in output. The model helps explain the fall of the labour's share in the Brazilian output during the 1980s.

Date: 1995-01
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Entrepreneurial risk and labor's share in output (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:epgewp:252

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