Summary of Wealth, Tastes, and Entrepreneurial Choice
Is it worthwhile for government to subsidize small businesses?
Small-business owners tend to earn less than they would as full-time employees, but most of them prefer entrepreneurship for its nonmonetary rewards and thus don’t mind taking a pay cut to engage in such ventures. This original research by macroeconomists Erik G. Hurst and Benjamin W. Pugsley explores this mind-set and its implications for policy makers looking to stimulate employment and innovation through small-business subsidies. While informative, the report is a heavily technical read intended for a professional audience. Nonetheless, getAbstract recommends it to government policy makers and economists, as well as to entrepreneurs.
In this summary, you will learn
- What motivates the small-business owner,
- How government policies aimed at this niche may not be optimal and
- What impact the small-business owner’s mind-set has on the overall economy.
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