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The determinants of occupational choice in Colombia: an empirical analysis

Author

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  • Guillaume Destré

    (TEAM)

  • Valentine Henrard

    (TEAM)

Abstract

This economic study focuses on the determinants of self-employment/wage-work choice using a large sample of Colombian men. The econometric model is based on simultaneous determination of the choice of employment status and potential earnings, it accounts for self-selectivity. Our major findings are: (1) relative potential earnings are the main determinant of occupational choice. (2) Unlike previous studies of self-employment choice, we find a negative selection bias into self-employment. It suggests that in Colombia the decision of becoming independent might be constrained. (3) The differences in potential earnings between the two sectors are mostly due to unobserved factors

Suggested Citation

  • Guillaume Destré & Valentine Henrard, 2004. "The determinants of occupational choice in Colombia: an empirical analysis," Cahiers de la Maison des Sciences Economiques bla04065a, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:mse:wpsorb:bla04065a
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    References listed on IDEAS

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    Cited by:

    1. Carlos Bozzoli & Tilman Brück & Nina Wald, 2013. "Self-employment and Conflict in Colombia," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 117-142, February.
    2. Guataqui, Juan Carlos & García Suaza, Andrés Felipe & Rodríguez, Mauricio, 2009. "Estimaciones de los determinantes de los ingresos laborales en Colombia con consideraciones diferenciales para asalariados y cuenta propia," Documentos de Trabajo 5756, Universidad del Rosario.
    3. Peracchi, Franco & Perotti, Valeria & Scarpetta, Stefano, 2007. "Informality and social protection : preliminary results from pilot surveys in Bulgaria and Colombia," Social Protection Discussion Papers and Notes 41541, The World Bank.
    4. Thi Quynh Trang Do & Gérard Duchêne, 2007. "Determinants of self-employment : the case in Vietnam," Post-Print halshs-00281588, HAL.
    5. Nabamita Dutta & Saibal Kar & Russell S. Sobel, 2021. "What influences entrepreneurship among skilled immigrants in the USA? Evidence from micro-data," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(3), pages 146-154, July.
    6. Burbano Vallejo, Edy Lorena & Castro Aristizabal, Geovanny & Castillo Caicedo, Maribel, 2021. "What determines own-account work in Colombia? Some empirical evidence for the years 2010 and 2013 || ¿Qué determina el trabajo por cuenta propia en Colombia? Una evidencia empírica para los años 2010 ," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 32(1), pages 274-299, December.

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    More about this item

    Keywords

    Self-employment; occupational choice; labour markets; Colombia;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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