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Self-Employment and Conflict in Colombia

  • Carlos Bozzoli

    ()

    (German Institute of Economic Research)

  • Tilman Brück

    ()

    (German Institute of Economic Research)

  • Nina Wald

    ()

    (German Institute of Economic Research)

Many Colombians are confronted with the ongoing conflict which influences their decision making in everyday life, including their behaviour on labour markets. This study focuses on the impact of violent conflict on self-employment, enlarging the usual determinants by a set of conflict variables. In order to estimate the effect of conflict on selfemployment, we employ fixed effects estimation. Three datasets are combined for estimation: the Familias en Acción dataset delivers information about individuals, a second dataset contains different indicators of the Colombian conflict on the municipality level and the third dataset includes taxes to measure a municipality’s economic situation. Our results show that high homicide and displacement rates at the community of origin reduces self-employment while a high influx of displaced increases the probability of self-employment at the municipality of destination.

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Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 82.

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Length: 41 pages
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:hic:wpaper:82
Contact details of provider: Web page: http://www.hicn.org

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  1. Camilo Mondragón-Vélez & Ximena Peña, 2010. "Business Ownership and Self-Employment in Developing Economies: The Colombian Case," NBER Chapters, in: International Differences in Entrepreneurship, pages 89-127 National Bureau of Economic Research, Inc.
  2. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2005. "Entrepreneurship Selection and Performance: A Meta-Analysis of the Impact of Education in Developing Economies," World Bank Economic Review, World Bank Group, vol. 19(2), pages 225-261.
  3. Demirguc-Kunt, Asli & Klapper, Leora F. & Panos, Georgios A., 2009. "Entrepreneurship in post-conflict transition : the role of informality and access to finance," Policy Research Working Paper Series 4935, The World Bank.
  4. Sindy A. González & Héctor J. Villarreal, 2006. "More Pushed than Pulled: Self-employment in rural Mexico ten years after NAFTA," Working Papers 20063, Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey, revised Nov 2006.
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