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Self-Employment and Conflict in Colombia

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  • Carlos Bozzoli
  • Tilman Brück
  • Nina Wald

Abstract

Many Colombians are confronted with the ongoing conflict that influences their decision making in everyday life, including their behavior in labor markets. This study focuses on the impact of violent conflict on self-employment, enlarging the usual determinants with a set of conflict variables. In order to estimate the effect of conflict on self-employment, we employ fixed effects estimation. Three datasets are combined for estimation: the Familias en Acción dataset delivers information about individuals, a second dataset contains different indicators of the Colombian conflict at the municipality level and the third dataset includes taxes to measure a municipality's economic situation. Our results show that high homicide and displacement rates in the community of origin reduces self-employment, while a high influx of displaced increases the probability of self-employment in the destination municipality.

Suggested Citation

  • Carlos Bozzoli & Tilman Brück & Nina Wald, 2011. "Self-Employment and Conflict in Colombia," Discussion Papers of DIW Berlin 1098, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1098
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    References listed on IDEAS

    as
    1. Camilo Mondragón-Vélez & Ximena Peña, 2010. "Business Ownership and Self-Employment in Developing Economies: The Colombian Case," NBER Chapters, in: International Differences in Entrepreneurship, pages 89-127, National Bureau of Economic Research, Inc.
    2. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2005. "Entrepreneurship Selection and Performance: A Meta-Analysis of the Impact of Education in Developing Economies," The World Bank Economic Review, World Bank, vol. 19(2), pages 225-261.
    3. Demirguc-Kunt, Asli & Klapper, Leora F. & Panos, Georgios A., 2009. "Entrepreneurship in post-conflict transition : the role of informality and access to finance," Policy Research Working Paper Series 4935, The World Bank.
    4. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004.
    5. Gerardo Jacobs, 2007. "An Occupational Choice Model for Developing Countries," Proceedings of the German Development Economics Conference, Göttingen 2007 15, Verein für Socialpolitik, Research Committee Development Economics.
    6. Guillaume Destré & Valentine Henrard, 2004. "The determinants of occupational choice in Colombia: an empirical analysis," Cahiers de la Maison des Sciences Economiques bla04065a, Université Panthéon-Sorbonne (Paris 1).
    7. Sindy A. González & Héctor J. Villarreal, 2006. "More Pushed than Pulled: Self-employment in rural Mexico ten years after NAFTA," Working Papers 20063, Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey, revised Nov 2006.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Self-employment; civil conflict; rural labor markets; Colombia;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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