Self-employment in Brazil and its determinants: a spatial analysis
Abstract
In this paper, we intend to identify some factors underlying the different rates of participation of self-employed workers in Brazilian municipalities. In contrast with previous analysis, our study is sensitive to the spatial dimension of self-employment in Brazil. Relying on geo-referenced data from areal units, our approach avoids the restrictive assumptions of independence between area effects. Two different approaches to spatial analysis are exploited, Exploratory Spatial Data Analysis (ESDA) and Spatial Econometrics. We show that substantial geographical heterogeneity in rates of self-employment exists within Brazil. The results point to the presence of clusters of municipalities with similar rates of participation of self-employment in the economy. The fitting of a spatial lag model to the data demonstrates that significant part of variation in self-employment is explained by spatial dependence. In addition, the municipality's degree of urbanization, rate of employment in the secondary sector as well as GDP per capita among others, indeed influences its rate of self-employment. We conclude that spatial analysis can provide useful insights in analyzing self-employment in Brazil.Download Info
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Paper provided by Cedeplar, Universidade Federal de Minas Gerais in its series Textos para Discussão Cedeplar-UFMG with number td204.Length: 24 pages
Date of creation: Jun 2003
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Handle: RePEc:cdp:texdis:td204
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Keywords: Brazil; self-employment;References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
- Niels G. Noorderhaven & Sander Wennekers and Geert Hofstede & A. Roy Thurik & Ralph E. Wildeman, 1999. "Self-Employment out of Dissatisfaction: An International Study," Tinbergen Institute Discussion Papers 99-089/3, Tinbergen Institute.
- Bera, Anil K. & Yoon, Mann J., 1993. "Specification Testing with Locally Misspecified Alternatives," Econometric Theory, Cambridge University Press, vol. 9(04), pages 649-658, August.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Olivier Bargain & Prudence Kwenda, 2010.
"Is Informality Bad? - Evidence from Brazil, Mexico and South Africa,"
Working Papers
201003, School Of Economics, University College Dublin.
- Bargain, Olivier & Kwenda, Prudence, 2010. "Is Informality Bad? Evidence from Brazil, Mexico and South Africa," IZA Discussion Papers 4711, Institute for the Study of Labor (IZA).
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