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Determinants of self-employment : the case in Vietnam

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Abstract

The determinants of self-employment are widely studied in the economic literature in recent twenty years. However, in the case of Vietnam where self-employed population takes an important proportion in workforce, it remains an under researched area. By using the data from the Vietnam Household Living Standard Survey 2004 (VHLSS2004), this paper aims to provide clearer insights into this area. We use the Heckman method to determine the level and identify the factors that affect the workers' choice between self-employment and wage employment in Vietnam. We emphasize the role of expected earnings differential in workers' decision making. Comparisons between female and male workers are made. Our empirical results show that there exist a number of determinants that permit to construct the pattern of self-employed as well a salary workers in Vietnam. Regardless of educational attainment, experiences and familial background, perspective of having higher earnings plays an important role in choice behavior of workers.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2008/V08038.pdf
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Bibliographic Info

Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number v08038.

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Length: 31 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:mse:cesdoc:v08038

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Keywords: GARCH; Generalized Hyperbolic Distribution; pricing; risk neutral distribution.;

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Cited by:
  1. Guataqui, Juan Carlos & García Suaza, Andrés Felipe & Rodríguez, Mauricio, 2009. "Estimaciones de los determinantes de los ingresos laborales en Colombia con consideraciones diferenciales para asalariados y cuenta propia," DOCUMENTOS DE TRABAJO 005756, UNIVERSIDAD DEL ROSARIO.
  2. Anwar, Mumtaz & Faridi, Muhammad Zahir & Chaudhry, Imran Sharif & Majeed, Asma, 2010. "The Determinants of Self-Eployment in Pakistan: Evidence From Primary Data Analysis," MPRA Paper 28196, University Library of Munich, Germany.

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