Planning horizon in labour supply of Belarusian small entrepreneurs

Josef Abrhám, Yuriy Bilan, Aliona Krauchenia and Wadim Strielkowski

Economic Research-Ekonomska Istraživanja, 2015, vol. 28, issue 1, 773-787

Abstract: Our article focuses on testing the intertemporal substitution hypothesis (ISH) that predicts a positive relationship between hours worked and transitory changes in wages for the owners of Belarusian small and medium enterprises (SMEs). Our results demonstrate that Belarusian entrepreneurs are willing to work a fixed number of hours regardless of their businesses’ performance. Additionally, it appears that females have larger labour supply elasticity than males (it should be noted that male labour supply elasticity becomes even more insignificant when we use robust standard errors). Our results are consistent with the similar findings in USA, Africa, UK and Poland, however, they cannot be generalised for larger companies, since the nature of ISH testing largely depends on the size of the company and its decision-making processes. Our findings suggest that the complicated business environment in Belarus (e.g. difficulties in establishing and running an enterprise, tight bureaucratic control and slow business dynamics) and worsening conditions of the Belarusian economy make small Belarusian entrepreneurs plan their time horizons in a uniquely short-sighted way.

Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2015.1084238 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:reroxx:v:28:y:2015:i:1:p:773-787

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2015.1084238

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().