Self-Employment in Chile, long run trends and education and age structures changes
AbstractThis paper studies long-term trends of self-employment in Chile. Self-employment is associated with poor job conditions, vulnerability, and instability or informal labor market. Contrary to what is expected, self- employment level does not respond to macroeconomic variables. Using forty-one cross sections of the longest Employment Survey available, we show that there is little correlation of the economic cycle with variations in self-employment. Cohort effects are also unimportant. In fact, age is the most important predictor of self- employment; older people are more likely to be self-employed. In addition, we performed a decomposition of changes in self-employment on changes in coefficients, which are a measure of the returns to individual characteristics, and on changes in characteristics. The results indicate that self-employment should have decreased given the changes in individual characteristics, but was prevented by changes in coefficients. We also find indirect evidence that these changes i
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Bibliographic InfoArticle provided by University of Chile, Department of Economics in its journal Estudios de Economia.
Volume (Year): 34 (2007)
Issue (Month): 2 Year 2007 (December)
Informal employment; cohort analysis; oaxaca decomposition.;
Find related papers by JEL classification:
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
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