Self-Employment in Chile, long run trends and education and age structures changes

Esteban Puentes, Dante Contreras and Claudia Sanhueza

Estudios de Economia, 2007, vol. 34, issue 2 Year 2007, 203-247

Abstract: This paper studies long-term trends of self-employment in Chile. Self-employment is associated with poor job conditions, vulnerability, and instability or informal labor market. Contrary to what is expected, self- employment level does not respond to macroeconomic variables. Using forty-one cross sections of the longest Employment Survey available, we show that there is little correlation of the economic cycle with variations in self-employment. Cohort effects are also unimportant. In fact, age is the most important predictor of self- employment; older people are more likely to be self-employed. In addition, we performed a decomposition of changes in self-employment on changes in coefficients, which are a measure of the returns to individual characteristics, and on changes in characteristics. The results indicate that self-employment should have decreased given the changes in individual characteristics, but was prevented by changes in coefficients. We also find indirect evidence that these changes i

Keywords: Informal employment; cohort analysis; oaxaca decomposition. (search for similar items in EconPapers)
JEL-codes: C13 J23 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:udc:esteco:v:34:y:2007:i:2:p:203-247

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