Self-Employment and Wage Earning: Hungary During Transition
AbstractWe examine the earnings determinants of the self-employed and wage earners in Hungary in the mid-1990's, taking into account two forms of selection: selection into working or non-working for every individual in our sample and selection into self-employment or wage-earning jobs for workers only. Previous studies use switching regression to examine the returns to individual characteristics taking into account only selection into self-employment or wage-earning jobs. We find that the estimated returns to individual characteristics when accounting for both forms of selection differ from estimates correcting for only selection into self-employment or wage-earning jobs. We also find that the earnings determinants of the two sectors are not significantly different from each other.
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Bibliographic InfoPaper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200219.
Date of creation: 22 Aug 2002
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decomposition; self-employment ; self-selection; switching; transition;
Other versions of this item:
- Co, Catherine Y. & Gang, Ira N. & Yun, Myeong-Su, 2002. "Self-Employment and Wage Earning: Hungary During Transition," IZA Discussion Papers 572, Institute for the Study of Labor (IZA).
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
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