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Economic cycles and self-employment: Synthetic Cohort Analysis for Greater Santiago

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  • Rodrigo Montero
  • Joaquín Pérez

Abstract

Economic cycles affect both unemployment and the composition of employment, which can have an impact on the well-being of individuals if these changes in composition are involuntary or involve a decrease in the quality of employment. In this article, we study the relationship between economic cycles and self-employment, distinguishing between employers and own-account workers, through a synthetic cohort methodology using data for Chile. The results suggest that the proportion of employers is procyclical and that of own-account workers is countercyclical. This suggests that own-account employment is a refuge in times of crisis from the shortage of wage-based employment. This highlights the importance of designing public policies that would improve the conditions of self-employed workers.

Suggested Citation

  • Rodrigo Montero & Joaquín Pérez, 2022. "Economic cycles and self-employment: Synthetic Cohort Analysis for Greater Santiago," Estudios de Economia, University of Chile, Department of Economics, vol. 49(1 Year 20), pages 5-30, June.
    • Handle: RePEc:udc:esteco:v:49:y:2022:i:1:p:5-30
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    File URL: https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/67359/70435
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    More about this item

    Keywords

    Self-employment; employer; own-account.;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other

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