Self-Employment and Wage Earning: Hungary During Transition

Ira N. Gang (), Catherine Y. Co () and Myeong-Su Yun ()

Departmental Working Papers from Rutgers University, Department of Economics

Abstract: We examine the earnings determinants of the self-employed and wage earners in Hungary in the mid-1990's, taking into account two forms of selection: selection into working or non-working for every individual in our sample and selection into self-employment or wage-earning jobs for workers only. Previous studies use switching regression to examine the returns to individual characteristics taking into account only selection into self-employment or wage-earning jobs. We find that the estimated returns to individual characteristics when accounting for both forms of selection differ from estimates correcting for only selection into self-employment or wage-earning jobs. We also find that the earnings determinants of the two sectors are not significantly different from each other.

Keywords: decomposition; self-employment; self-selection; switching; transition (search for similar items in EconPapers)
JEL-codes: C34 J31 P23 (search for similar items in EconPapers)
Date: 2002-08-22
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Working Paper: Self-Employment and Wage Earning: Hungary During Transition (2002)
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Persistent link: http://EconPapers.repec.org/RePEc:rut:rutres:200219

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