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On the nature of micro-entrepreneurship: evidence from Argentina

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  • Gabriel V. Montes Rojas
  • Lucas Siga

Abstract

We analyse the nature of micro-entrepreneurship in Argentina. We focus on whether the sector resembles its counterpart in industrialized countries, characterized by the risk-taking nature of the entrepreneurial activity, or if it is the result of labour market distortions and disguised unemployment, as in the dual economy hypothesis. Our results suggest a segmentation of the micro-entrepreneur sector. Both young uneducated and middle aged highly educated salaried workers have the highest likelihood of becoming entrepreneurs. However, the first segment has a high probability of becoming own-account workers, while the probability of becoming micro-entrepreneurs with employees is strictly increasing in both age and education. Moreover, the probability of entrepreneur failure (as measured by the transition to the salaried sector) has an inverted U shape, implying that both high and low skill individuals are more likely to remain entrepreneurs.

Suggested Citation

  • Gabriel V. Montes Rojas & Lucas Siga, 2009. "On the nature of micro-entrepreneurship: evidence from Argentina," Applied Economics, Taylor & Francis Journals, vol. 41(21), pages 2667-2680.
  • Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2667-2680
    DOI: 10.1080/00036840701335553
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    References listed on IDEAS

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    Cited by:

    1. Teemu Kautonen & Marco Van Gelderen & Erno T. Tornikoski, 2011. "Predicting entrepreneurial behaviour: a test of the theory of planned behaviour," Post-Print hal-00741505, HAL.
    2. Albort-Morant, Gema & Oghazi, Pejvak, 2016. "How useful are incubators for new entrepreneurs?," Journal of Business Research, Elsevier, vol. 69(6), pages 2125-2129.
    3. Dr. Esteban Maioli, 2017. "New Generations and Employment – An Exploratory Study about Tensions Between the Psycho-social Characteristics of the Generation Z and Expectations and Actions of Organizational Structures Related wit," Journal of Business, LAR Center Press, vol. 2(1), pages 1-12, January.
    4. World Bank, 2009. "Mexico - Improving Productivity for the Urban Poor," World Bank Other Operational Studies 3047, The World Bank.
    5. Federico S. Mandelman & Gabriel V. Montes Rojas, 2007. "Microentrepreneurship and the business cycle: is self-employment a desired outcome?," FRB Atlanta Working Paper 2007-15, Federal Reserve Bank of Atlanta.

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