Comparative Advantage in Self-Employment and Paid Work

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Comparative Advantage in Self-Employment and Paid Work

Author Info

Irwin Bernhardt

Abstract

The author reports a study of self-employment/paid-work choice, based on a representative sample of white Canadian men. The main findings are as follows: relative potential earnings is the main choice determinant; potential earnings differences between groups is primarily due to unobserved factors: market values of observed characteristics are similar between groups and relative potential earnings, based only on observed characteristics, are not an explainer of choice; and paid workers have higher potential earnings in both sectors, with a greater advantage in paid work. But the apparent comparative advantage is not significant.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 27 (1994)
Issue (Month): 2 (May)
Pages: 273-89
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Handle: RePEc:cje:issued:v:27:y:1994:i:2:p:273-89

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David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Douglas Marcouiller, S.J. & Veronica Ruiz de Castilla & Christopher Woodruff, 1995. "Formal Measures of the Informal Sector Wage Gap in Mexico, El Salvador, and Peru," Boston College Working Papers in Economics 294., Boston College Department of Economics. [Downloadable!]
Other versions:
- Marcouiller, Douglas & Ruiz de Castilla, Veronica & Woodruff, Christopher, 1997. "Formal Measures of the Informal-Sector Wage Gap in Mexico, El Salvador, and Peru," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 367-92, January.
Lin, Zhengxi & Picot, Garnett & Yates, Janice, 1999. "Rising Self-employment in the Midst of High Unemployment: An Empirical Analysis of Recent Developments in Canada," Analytical Studies Branch Research Paper Series 1999133e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
Nils Braakmann, 2007. "Differences in the earnings distribution of self- and dependent emploxed German men - evidence from a quantile regression decomposition analysis," Working Paper Series in Economics 55, University of Lüneburg, Institute of Economics. [Downloadable!]
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). [Downloadable!]
David G. Blanchflower & Chris Shadforth, 2007. "Entrepreneurship in the UK," IZA Discussion Papers 2818, Institute for the Study of Labor (IZA). [Downloadable!]
Lin, Zhengxi & Picot, Garnett & Yates, Janice, 1999. "The Entry and Exit Dynamics of Self-employment in Canada," Analytical Studies Branch Research Paper Series 1999134e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
Sarah Brown & Lisa Farrell & Mark N. Harris, 2003. "Who are the Self-employed? A New Approach," Monash Econometrics and Business Statistics Working Papers 11/03, Monash University, Department of Econometrics and Business Statistics. [Downloadable!]
Other versions:
- Brown, Sarah & Lisa Farrell & Mark N Harris, 2003. "Who are the Self-employed? A New Approach," Royal Economic Society Annual Conference 2003 31, Royal Economic Society. [Downloadable!]
Thomas Astebro & Irwin Bernhardt, 1999. "The Winners Curse of Human Capital," Working Papers 99-5, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
Sarah Brown & Lisa Farrell & John G Sessions, 2001. "Employment Contract Matching: An Analysis of Dual Earner Couples and Working Households," Discussion Papers in Economics 01/9, Department of Economics, University of Leicester. [Downloadable!]

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