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

  • Maryia Akulava

    ()

    (Belarusian Economic Research and Outreach Center (BEROC))

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.

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File URL: http://eng.beroc.by/webroot/delivery/files/WP18_eng_Akulava.pdf
File Function: First version, 2012
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Paper provided by Belarusian Economic Research and Outreach Center (BEROC) in its series BEROC Working Paper Series with number 18.

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Length: 28 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:bel:wpaper:18
Contact details of provider: Web page: http://www.beroc.by
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  1. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, December.
  2. 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).
  3. De Wit, G. & Winden, F., 1989. "An Empirical Analysis Of Self-Employment In The Netherlands," Papers 89.02, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
  4. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  5. Aurora Galego, 2006. "The Self-Employment Choice in Portugal: How Different are Women from Men," Economics Working Papers 3_2006, University of Évora, Department of Economics (Portugal).
  6. Kimmel, Jean & Kniesner, Thomas J., 1998. "New evidence on labor supply:: Employment versus hours elasticities by sex and marital status," Journal of Monetary Economics, Elsevier, vol. 42(2), pages 289-301, July.
  7. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
  8. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
  9. 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.
  10. Catherine C. Eckel & Philip J. Grossman, 2008. "Sex and Risk: Experimental Evidence," Monash Economics Working Papers archive-09, Monash University, Department of Economics.
  11. Yannis Georgellis & Howard Wall, 2005. "Gender differences in self-employment," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(3), pages 321-342.
  12. Cowling, Marc & Taylor, Mark, 2001. " Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, vol. 16(3), pages 167-75, May.
  13. repec:cup:cbooks:9780521828130 is not listed on IDEAS
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