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Entrepreneurship in Brazil: A Worthy Endeavor?

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Listed:
  • Igor Serpa Moraes
  • Roque Pinto de Camargo Neto
  • Vivian S. Queiroz Orellana
  • Gabrielito Rauter Menezes

Abstract

This study analyzes if there are differences between the income of entrepreneurs and wage earners in Brazil. Using data from the 2015 National Household Sample Survey database, we estimate a Mincer equation, correcting for self-selection, which explains the choice of entrepreneurship in the function of earnings related to salaried work. Subsequently, the wage differential per category is decomposed using the Oaxaca-Blinder procedure. To complete the analysis, a detailed decomposition is used to identify the explained and unexplained components of the wage gap. The results indicate that personal, cultural, and demographic characteristics affect the entrepreneurial occupational choice as well the differential in the income of entrepreneurs and employees. On average, entrepreneurs earn approximately 19.68% more than salaried workers.

Suggested Citation

  • Igor Serpa Moraes & Roque Pinto de Camargo Neto & Vivian S. Queiroz Orellana & Gabrielito Rauter Menezes, 2020. "Entrepreneurship in Brazil: A Worthy Endeavor?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(7), pages 1-98, July.
    • Handle: RePEc:ibn:ijefaa:v:12:y:2020:i:7:p:98
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    References listed on IDEAS

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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