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Choice of Becoming Self-Employed in Belarus: Impact of Monetary Gains

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  • Maryia Akulava

    () (Belarusian Economic Research and Outreach Center (BEROC))

Abstract

Development of self-employment becomes increasingly important issue for the transitional economy of Belarus. However the role of pecuniary benefits in terms of moving people towards selfemployment is not explored, and neither is the question of whether the direction of its’ impact is different for men and women in Belarus. The paper investigates that question using 2006-2010 Belarusian Household Survey on Incomes and Expenditures and is based on the multinomial logit choice model. To get selectivity corrected predicted earnings the methodology proposed by Bourguignon et al. (2007) is applied. The obtained results show that higher expected earnings attract women to turn into entrepreneurship compared with paid-employment while pecuniary benefits do not have significant effect on choice of men. Education, age and risk factor appear to be important influencing factors in terms of choice depending on the gender of an entrepreneur.

Suggested Citation

  • Maryia Akulava, 2012. "Choice of Becoming Self-Employed in Belarus: Impact of Monetary Gains," BEROC Working Paper Series 18, Belarusian Economic Research and Outreach Center (BEROC).
  • Handle: RePEc:bel:wpaper:18
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    References listed on IDEAS

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    1. Cowling, Marc & Taylor, Mark, 2001. "Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, vol. 16(3), pages 167-175, May.
    2. De Wit, Gerrit & Van Winden, Frans A. A. M., 1990. "An empirical analysis of self-employment in the Netherlands," Economics Letters, Elsevier, vol. 32(1), pages 97-100, January.
    3. Eckel, Catherine C. & Grossman, Philip J., 2008. "Men, Women and Risk Aversion: Experimental Evidence," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 113, pages 1061-1073, Elsevier.
    4. Yannis Georgellis & Howard Wall, 2005. "Gender differences in self-employment," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(3), pages 321-342.
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    7. François Bourguignon & Martin Fournier & Marc Gurgand, 2004. "Selection Bias Corrections Based on the Multinomial Logit Model: Monte-Carlo Comparisons," DELTA Working Papers 2004-20, DELTA (Ecole normale supérieure).
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    More about this item

    Keywords

    Entrepreneurship; pecuniary benefits; influencing factors; Belarus;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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