Human Capital Acquisition and Occupational Choice: Implications for Economic Development.

Using household-level data from Mexico we document patterns among schooling, entrepreneurial decisions and household characteristics such as assets, talent of household members and age of the household head. Motivated by our findings, we develop a heterogeneous-agent, incomplete-markets, overlapping-generations dynasty model. Households jointly decide over their life cycle on kids' human capital investments (schooling) and parents' entry, exit and investment into alternative entrepreneurial modes (subsistence and modern).