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Self-Employment and Wage Earning in Hungary

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  • Catherine Y. Co
  • Ira N. Gang
  • Myeong-Su Yun

Abstract

This paper examines the earnings determinants of the self-employed and wage earners in Hungary in the mid-1990s, taking into account two forms of selection: selection into working or non-working for every individual in its sample and selection into self-employment or wage-earning 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. The authors 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. They also find that the earnings determinants of the two sectors are not significantly different from each other. Copyright Blackwell Publishing Ltd 2005.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 9 (2005)
Issue (Month): 2 (05)
Pages: 150-165

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Handle: RePEc:bla:rdevec:v:9:y:2005:i:2:p:150-165

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

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Cited by:
  1. Ralitza Dimova & Ira N. Gang, 2004. "Self-Selection And Earnings During Volatile Transition," William Davidson Institute Working Papers Series 2004-699, William Davidson Institute at the University of Michigan.
  2. Frank M. Fossen & Tobias J. M. Büttner, 2012. "The Returns to Education for Opportunity Entrepreneurs, Necessity Entrepreneurs, and Paid Employees," Discussion Papers of DIW Berlin 1241, DIW Berlin, German Institute for Economic Research.
  3. Edwin van Gameren & Ingrid Ooms, 2009. "Childcare and labor force participation in the Netherlands: the importance of attitudes and opinions," Review of Economics of the Household, Springer, vol. 7(4), pages 395-421, December.
  4. Ralitza Dimova & Ira N. Gang, 2006. "Self-Selection And Wages During Volatile Transition," CEDI Discussion Paper Series 06-03, Centre for Economic Development and Institutions(CEDI), Brunel University.

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