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Self-Employment in Chile, long run trends and education and age structures changes

Author

Listed:
  • Esteban Puentes
  • Dante Contreras
  • Claudia Sanhueza

    ()

Abstract

This paper studies long-term trends of self-employment in Chile. Self-employment is associated with poor job conditions, vulnerability, and instability or informal labor market. Contrary to what is expected, self- employment level does not respond to macroeconomic variables. Using forty-one cross sections of the longest Employment Survey available, we show that there is little correlation of the economic cycle with variations in self-employment. Cohort effects are also unimportant. In fact, age is the most important predictor of self- employment; older people are more likely to be self-employed. In addition, we performed a decomposition of changes in self-employment on changes in coefficients, which are a measure of the returns to individual characteristics, and on changes in characteristics. The results indicate that self-employment should have decreased given the changes in individual characteristics, but was prevented by changes in coefficients. We also find indirect evidence that these changes i

Suggested Citation

  • Esteban Puentes & Dante Contreras & Claudia Sanhueza, 2007. "Self-Employment in Chile, long run trends and education and age structures changes," Estudios de Economia, University of Chile, Department of Economics, vol. 34(2 Year 20), pages 203-247, December.
  • Handle: RePEc:udc:esteco:v:34:y:2007:i:2:p:203-247
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    File URL: http://www.econ.uchile.cl/uploads/publicacion/61547f85-a324-4e9e-b1b1-065cde38891f.pdf
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    References listed on IDEAS

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    3. Amuedo-Dorantes, Catalina, 2004. "Determinants and Poverty Implications of Informal Sector Work in Chile," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 347-368, January.
    4. Sebastian Edwards & Alejandra Cox Edwards, 2002. "Social Security Privatization Reform and Labor Markets: The Case of Chile," NBER Working Papers 8924, National Bureau of Economic Research, Inc.
    5. Jorge E. Restrepo & Andrea Tokman R., 2005. "Labor Markets and Institutions: An Overview," Central Banking, Analysis, and Economic Policies Book Series,in: Jorge Restrepo & Andrea Tokman R. & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Edi (ed.), Labor Markets and Institutions, edition 1, volume 8, chapter 1, pages 001-016 Central Bank of Chile.
    6. Jaime Saavedra-Chanduví & Máximo Torero, 2000. "Labor Market Reforms and Their Impact on Formal Labor Demand and Job Market Turnover: The Case of Peru," Research Department Publications 3095, Inter-American Development Bank, Research Department.
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    10. Carmen Pagés-Serra, 2000. "The Cost of Job Security Regulation: Evidence from Latin American Labor Markets," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Fall 2000), pages 109-154, August.
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    Citations

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    Cited by:

    1. Daniel Jaar & Alejandro Gonzalez & Esteban Puentes, 2016. "Underemployment and Queues for Full Time Jobs: Evidence from Chile," Working Papers wp432, University of Chile, Department of Economics.
    2. repec:wly:jintdv:v:29:y:2017:i:4:p:473-499 is not listed on IDEAS

    More about this item

    Keywords

    Informal employment; cohort analysis; oaxaca decomposition.;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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