Switching Models with Self-Selection: Self-Employment in Hungary

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

Departmental Working Papers from Rutgers University, Department of Economics

Abstract: We estimate the determinants of earnings for both the self-employed and wage/salary sectors in an economy undergoing transition from socialism to greater market orientation. We adopt a (full information) MLE methodology in addition to Heckman's two-step method, while taking both participation and self-employment decisions into account. We use the Hungarian Household Panel Survey for 1994. We find that the return to characteristics are not significantly different between self-employed and wage/salary sectors. However, when we also account for the dispersion of earnings, the structure of the earnings between the self- and wage/salary employed are different

Keywords: decomposition; self-employment; self-selection; switching; transition (search for similar items in EconPapers)
JEL-codes: C34 J31 P23 (search for similar items in EconPapers)
Date: 1999-08-18
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:rut:rutres:199912

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