Self-Employment and Wage Earning: Hungary During Transition

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

No 572, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 nonworking for every individual in our sample and selection into self-employment or wageearning 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: wage-earning jobs; self-employment; switching; self-selection; economies intransition (search for similar items in EconPapers)
JEL-codes: C34 J31 P23 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2002-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Review of Development Economics, 2005, 9 (2), 150-165

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Working Paper: Self-Employment and Wage Earning: Hungary During Transition (2002)
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