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  • Влияние размера рынка на формирование предпринимательского сектора и уровень неравенства среди индивидов при неэластичном выпуске каждой фирмы

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Влияние размера рынка на формирование предпринимательского сектора и уровень неравенства среди индивидов при неэластичном выпуске каждой фирмы

This paper is addressed to explanation of impact of market size on selection into entrepreneurship and inequality within two-sector economy with secluded good, populated by individuals with additively-separable preferences,  defined by power specification of utility function. Individuals are differentiated by two characteristics: productivity and  type of  variety, which can be potentially produced by given individual if he or she chooses  entrepreneurial activity instead of salaried work. Each entrepreneur can produce only one unit of  given individual characteristics specific variety.  The specific variety are produced not unique producer, but for any type of entrepreneurial ability there are individuals with given ability, who produce the same variety. Number of such producers is defined by distribution of entrepreneurial abilities. Anyone of entrepreneurs producing the given type of variety has no market power and sells the variety by market price. From the other side, under  given   type of entrepreneurial ability whole range of varieties are produced by different entrepreneurs with given entrepreneurial ability. As far cost of production depends on entreprenurial ability, the prices charged by entrepreneurs with the same ability are equal.   Such specification of market structure allows consider symmetric equilibrium in terms of prices.  The main result oа the model is nontrivial  impact of  market size on outcome:  the bigger number of population, the less share of  salaried workers, the hire prices and the economy is more unequal.This paper is addressed to explanation of impact of market size on selection into entrepreneurship and inequality within two-sector economy with secluded good, populated by individuals with additively-separable preferences,  defined by power specification of utility function. Individuals are differentiated by two characteristics: productivity and  type of  variety, which can be potentially produced by given individual if he or she chooses  entrepreneurial activity instead of salaried work. Each entrepreneur can produce only one unit of  given individual characteristics specific variety.  The specific variety are produced not unique producer, but for any type of entrepreneurial ability there are individuals with given ability, who produce the same variety. Number of such producers is defined by distribution of entrepreneurial abilities. Anyone of entrepreneurs producing the given type of variety has no market power and sells the variety by market price. From the other side, under  given   type of entrepreneurial ability whole range of varieties are produced by different entrepreneurs with given entrepreneurial ability. As far cost of production depends on entreprenurial ability, the prices charged by entrepreneurs with the same ability are equal.   Such specification of market structure allows consider symmetric equilibrium in terms of prices.  The main result oа the model is nontrivial  impact of  market size on outcome:  the bigger number of population, the less share of  salaried workers, the hire prices and the economy is more unequal.