Self‐Employment and Queues for Wage Work: Evidence from Chile
Dante Contreras (),
Roberto Gillmore and
Esteban Puentes ()
Journal of International Development, 2017, vol. 29, issue 4, 473-499
Self‐employment can be considered as either the result of a self‐selection process or a reflection of rigidities and skill mismatch in the labour market or both. We estimate a double selection model where individuals queue for wage work instead of being self‐employed in the first stage, followed by employers selecting from the queue in the second. We find statistical support for the double selection model, implying that some individuals are self‐employed because they cannot find wage work, while other self‐select to be self‐employed. Individuals with higher education are more often chosen as wage workers, and belonging to an ethnic group decreases the likelihood of being chosen. Additionally, earnings equations suggest that high ability individuals perform better in both the wage work and self‐employment sectors. Copyright © 2015 John Wiley & Sons, Ltd.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:29:y:2017:i:4:p:473-499
Access Statistics for this article
Journal of International Development is currently edited by Paul Mosley and Hazel Johnson
More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().