This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Predicted earnings and the propensity for self-employment: Evidence from Sweden

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Mats Hammarstedt
Abstract

Purpose – The purpose of this paper is to investigate the influence of the predicted earnings differential between self-employment and wage-employment on self-employment propensities in Sweden using a large data set from the year 2003. Design/methodology/approach – The analysis in the paper is based on the presumption that the individual chooses to work in either the self-employed or the wage-employed sector. The separate earnings functions for the self-employed and the wage-employed are estimated in order to predict an individual's earnings in each sector. In order to overcome selectivity problems a Heckman approach is used at this stage. Finally, a structural probit model, where the difference in predicted earnings from the two sectors is included as an independent variable, is estimated. Findings – The main result is that the predicted differential between self-employment and wage-employment earnings plays an important role for the self-employment decision and that an increase in this earnings differential will lead to a higher self-employment rate and to an increase in total employment in Sweden. Originality/value – The policy relevance of this question is evident since previous research has shown that self-employed individuals do not only create jobs for themselves but also for others. Thus, an increase in the earnings from self-employment relative to the earnings from wage-employment will increase the self-employment rate as well as total employment.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=2F70B8020DAEA5DD3A3B6E6DC8DDF53D?contentType=Article&contentId=1801127
File Format: text/html
File Function:
Download Restriction: Cannot be freely downloaded

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

Volume (Year): 30 (2009)
Issue (Month): 4 (July)
Pages: 349-359
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:eme:ijmpps:v:30:y:2009:i:4:p:349-359

Contact details of provider:
Web page: http://www.emeraldinsight.com

Order Information:
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Email:
Web: http://www.emeraldinsight.com/ijm.htm

For technical questions regarding this item, or to correct its listing, contact: (Rebecca Forster).

Related research
Keywords: Earnings; Employees; Self employed workers; Sweden;

Statistics
Access and download statistics

Did you know? All the bibliographic data shown here has been contributed by volunteers, thereby helping to keep this service free.

This page was last updated on 2009-12-11.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.