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Self-employment and the predicted earnings differential - evidence from Finland

Author

Listed:
  • Edvard Johansson

    (Department of Economics, Swedish School of Economics and Business Administration, Finland)

Abstract

Using a large Finnish data set, the choice between self-employment and paidemployment is analysed empirically. The model used is a switching regression model with endogenous switching. The main result suggests that the predicted earnings differential between self-employment and paid employment has a positive influence on the probability of being self-employed.

Suggested Citation

  • Edvard Johansson, 2000. "Self-employment and the predicted earnings differential - evidence from Finland," Finnish Economic Papers, Finnish Economic Association, vol. 13(1), pages 45-55, Spring.
  • Handle: RePEc:fep:journl:v:13:y:2000:i:1:p:45-55
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    References listed on IDEAS

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    9. Taylor, Mark P, 1996. "Earnings, Independence or Unemployment: Why Become Self-Employed?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(2), pages 253-266, May.
    10. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    11. Acs, Zoltán J & Audretsch, David B & Evans, David S, 1994. "Why Does the Self-Employment Rate Vary Across Countries and Over Time?," CEPR Discussion Papers 871, C.E.P.R. Discussion Papers.
    12. Rees, Hedley & Shah, Anup, 1986. "An Empirical Analysis of Self-employment in the U.K," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 95-108, January.
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    Citations

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    Cited by:

    1. Carolina Castagnetti & Luisa Rosti, 2011. "Who skims the cream of the Italian graduate crop? Wage employment versus self-employment," Small Business Economics, Springer, vol. 36(2), pages 223-234, February.
    2. José María Millán & Emilio Congregado & Concepción Román, 2010. "Determinants of Self-Employment Dynamics and their Implications on Entrepreneurial Policy Effectiveness," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 72, pages 45-76.
    3. Edvard Johansson, 2005. "An estimate of self-employment income underreporting in Finland," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 99-109.
    4. Castagnetti, Carolina & Rosti, Luisa, 2009. "Effort allocation in tournaments: The effect of gender on academic performance in Italian universities," Economics of Education Review, Elsevier, vol. 28(3), pages 357-369, June.
    5. Johannes Martin, 2013. "The Impact on Earnings When Entering Self-Employment: Evidence for Germany," SOEPpapers on Multidisciplinary Panel Data Research 537, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Helena Svaleryd, 2015. "Self-employment and the local business cycle," Small Business Economics, Springer, vol. 44(1), pages 55-70, January.
    7. Hannu Tervo & Mika Haapanen, 2006. "Gender Differences in Self-Employment in Finnish Regions," ERSA conference papers ersa06p380, European Regional Science Association.
    8. Williams, Donald R., 2012. "Gender discrimination and self-employment dynamics in Europe," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 153-158.
    9. Roope Uusitalo, 2001. "Homo entreprenaurus?," Applied Economics, Taylor & Francis Journals, vol. 33(13), pages 1631-1638.
    10. Blanchflower, David G. & Shadforth, Chris, 2007. "Entrepreneurship in the UK," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 3(4), pages 257-364, July.
    11. Andersson Joona, Pernilla & Wadensjö, Eskil, 2006. "Employees Who Become Self-Employed: Do Labour Income and Wages Have an Impact?," IZA Discussion Papers 1971, Institute for the Study of Labor (IZA).
    12. Carolina Castagnetti & Luisa Rosti, 2010. "The Gender Gap in Academic Achievements of Italian Graduates," Quaderni di Dipartimento 118, University of Pavia, Department of Economics and Quantitative Methods.
    13. Ekelund, Jesper & Johansson, Edvard & Jarvelin, Marjo-Riitta & Lichtermann, Dirk, 2005. "Self-employment and risk aversion--evidence from psychological test data," Labour Economics, Elsevier, vol. 12(5), pages 649-659, October.
    14. Arndt Werner & Johanna Gast & Sascha Kraus, 2014. "The effect of working time preferences and fair wage perceptions on entrepreneurial intentions among employees," Small Business Economics, Springer, vol. 43(1), pages 137-160, June.
    15. Anu Tokila & Hannu Tervo, 2011. "Regional differences in returns to education for entrepreneurs versus wage earners," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 689-710, December.

    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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