Since a big proportion of the labor force in developing countries belongs to the self-employment sector, it is desirable to build models to study these dynamics. Previous works study the occupational choices of agents. The most recent ones build general equilibrium economies with three types of agents: entrepreneurs, workers and self-employees. Unfortunately, in theses works at equilibrium, workers are poorer than agents in self-employment. Data for developing countries shows that self-employment provides a subsistence level for most agents, with workers earning a higher level of income. This work builds a general equilibrium model that is consistent with this observation
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.
Find related papers by JEL classification: L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
This paper has been announced in the following NEP Reports:
References listed on IDEAS Please 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.: