The effects of exposure to hyperinflation on occupational choice

Joao De Mello, Caio Waisman and Eduardo Zilberman

Journal of Economic Behavior & Organization, 2014, vol. 106, issue C, 109-123

Abstract: We use data on immigrants who live in the United States to study the effects of exposure to hyperinflation on occupational choice. To do so, we calculate the number of years an individual had lived under hyperinflation before arriving to the US. We find that its marginal effect on the probability of being self-employed instead of wage-earner is 0.87 percentage point. This finding suggests that the macroeconomic environment one lives in permanently affects his economic behavior. The estimated effect depends on the age individuals had when exposed to hyperinflation. In particular, it vanishes for those over the age of 40.

Keywords: Hyperinflation; Self-employment; Immigrants (search for similar items in EconPapers)
JEL-codes: E31 J24 J61 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: The Effects of Exposure to Hyperinflation on Occupational Choice (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:106:y:2014:i:c:p:109-123

DOI: 10.1016/j.jebo.2014.05.008

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