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Is Self-employment and Micro-entrepreneurship a Desired Outcome?

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Author Info

  • Mandelman, Federico S.
  • Montes-Rojas, Gabriel V.

Abstract

Summary This paper links employment dynamics to the business cycle in Argentina and examines the self-employed sector. We evaluate whether this sector resembles the industrialized countries view, where it is characterized as being creative and dynamic, or the dualistic view, where it is seen as stagnant and unproductive. We study transition patterns from salaried positions and unemployment, and the evolution of the sector in the period of analysis. We found a clear segmentation. Own-account workers (accounting for over two-thirds of the self-employed) show characteristics similar to what is predicted by the dualistic view; while self-employed with employees resembles the industrialized countries view.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 12 (December)
Pages: 1914-1925

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:12:p:1914-1925

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: Latin America Argentina micro-firms self-employment business cycles;

References

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  10. Henley, Andrew & Arabsheibani, G. Reza & Carneiro, Francisco G., 2006. "On defining and measuring the informal sector," Policy Research Working Paper Series 3866, The World Bank.
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  12. Hugo Ñopo & Patricio Valenzuela, 2007. "Becoming an Entrepreneur," Research Department Publications 4519, Inter-American Development Bank, Research Department.
  13. Maloney, William F, 1999. "Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico," World Bank Economic Review, World Bank Group, vol. 13(2), pages 275-302, May.
  14. McKenzie, David J, 2004. "Aggregate Shocks and Urban Labor Market Responses: Evidence from Argentina's Financial Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 719-58, July.
  15. Prabir C. Bhattacharya, 2002. "Rural-to-urban migration in LDCS: a test of two rival models," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 951-972.
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Citations

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Cited by:
  1. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurial activity across European cities," ERSA conference papers ersa10p1646, European Regional Science Association.
  2. Congregado, Emilio & Golpe, Antonio A. & Carmona, Mónica, 2010. "Is it a good policy to promote self-employment for job creation? Evidence from Spain," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 828-842, November.
  3. Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2011. "Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap," World Development, Elsevier, vol. 39(5), pages 773-783, May.
  4. Gabrieli, T. & Galvao Jr, A. F. & Montes-Rojas, G., 2010. "Who benefits from reducing the cost of formality? Quantile regression discontinuity analysis," Working Papers 10/07, Department of Economics, City University London.
  5. Traikova, Diana, 2013. "Determinants of non-farm entrepreneurial intentions in a transitional context: Evidence from rural Bulgaria," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 72, number 72.
  6. Traikova, Diana & Mollers, Judith & Buchenrieder, Gertrud, 2012. "How Farmers Become Entrepreneurs - Prenatal Diagnostic of Rural Firms in Bulgaria," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126816, International Association of Agricultural Economists.
  7. Bezu, Sosina & Barrett, Christopher B., 2010. "Employment dynamics in the rural nonfarm sector in Ethiopia Do the poor have time on their side?," MPRA Paper 35756, University Library of Munich, Germany, revised 2011.
  8. Simoes, Nadia & Moreira, Sandrina B. & Crespo, Nuno, 2013. "Individual Determinants of Self-Employment Entry – What Do We Really Know?," MPRA Paper 48403, University Library of Munich, Germany.
  9. Millán, José María & Congregado, Emilio & Román, Concepción, 2014. "Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 83-106.
  10. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and cities: evidence from the post-communist world," ERSA conference papers ersa11p288, European Regional Science Association.

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