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Self-Employment and Wage Earning in Hungary

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  • Catherine Y. Co
  • Ira N. Gang
  • Myeong-Su Yun

Abstract

This paper examines the earnings determinants of the self-employed and wage earners in Hungary in the mid-1990s, taking into account two forms of selection: selection into working or non-working for every individual in its 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. The authors 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. They also find that the earnings determinants of the two sectors are not significantly different from each other. Copyright Blackwell Publishing Ltd 2005.

Suggested Citation

  • Catherine Y. Co & Ira N. Gang & Myeong-Su Yun, 2005. "Self-Employment and Wage Earning in Hungary," Review of Development Economics, Wiley Blackwell, vol. 9(2), pages 150-165, May.
  • Handle: RePEc:bla:rdevec:v:9:y:2005:i:2:p:150-165
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    Cited by:

    1. Fossen, Frank M. & Büttner, Tobias J.M., 2013. "The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees," Economics of Education Review, Elsevier, vol. 37(C), pages 66-84.
    2. Dimova, Ralitza & Gang, Ira N., 2007. "Self-selection and wages during volatile transition," Journal of Comparative Economics, Elsevier, pages 612-629.
    3. Ira N. Gang & Ralitza Dimova, 2004. "Self-Selection And Earnings During Volatile Transition," Departmental Working Papers 200409, Rutgers University, Department of Economics.
    4. Dimova, Ralitza & Gang, Ira N., 2007. "Self-selection and wages during volatile transition," Journal of Comparative Economics, Elsevier, pages 612-629.
    5. Estrin, Saul & Stephan, Ute & Vujić, Sunčica, 2014. "Do Women Earn Less Even as Social Entrepreneurs?," IZA Discussion Papers 8650, Institute for the Study of Labor (IZA).
    6. Edwin van Gameren & Ingrid Ooms, 2009. "Childcare and labor force participation in the Netherlands: the importance of attitudes and opinions," Review of Economics of the Household, Springer, vol. 7(4), pages 395-421, December.

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