Self-employment in Spain: Transition and earnings differential
In this paper we analyze the factors that influence transitions into self-employment in Spain using a discrete time duration model, and, given the evidence of lower earnings among self-employees, we further explain the earnings differential between employees and self-employees using a Oaxaca-Blinder approach. The analysis is based on the European Community Household Panel (ECPH) for 1994-2001. According to our results, the factors explaining the transition into self-employment differ according to previous status in the labor market. In general, young males have a higher probability of entering selfemployment; but while for those previously out of the labor market the probability increases with higher education, the opposite is true for employees, and this may be due to the characteristics of their jobs. Additionally, we show that the observed earnings differential between self- and paid employees is a consequence of the selectivity bias into each labor status.
|Date of creation:||Sep 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 986 - 812500
Fax: 986 - 812401
Web page: http://webx06.webs.uvigo.es/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kidd, Michael P, 1993.
"Immigrant Wage Differentials and the Role of Self-Employment in Australia,"
Australian Economic Papers,
Wiley Blackwell, vol. 32(60), pages 92-115, June.
- Kidd, M.P., 1990. "Immigrant Wage Differentials And The Role Of Self- Employment In Australia," Papers 1990-07, Tasmania - Department of Economics.
- Kidd, M.P., 1993. "Immigrant Wage Differentials and the Role of Self-Employment in Australia," CEPR Discussion Papers 291, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, May.
- Thomas Leoni & Martin Falk, 2010. "Gender and field of study as determinants of self-employment," Small Business Economics, Springer, vol. 34(2), pages 167-185, February.
- Javier Gardeazabal & Aratza Ugidos, .
"More on identification in detailed wage decompositions,"
Studies on the Spanish Economy
- Javier Gardeazabal & Arantza Ugidos, 2004. "More on Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 1034-1036, November.
- Ugidos Olazabal, Arantza & Gardeazabal, Javier, 2002. "More on Identification on Detailed Wage Decompositions," DFAEII Working Papers 2002-17, University of the Basque Country - Department of Foundations of Economic Analysis II.
- Taylor, Mark P, 1996. "Earnings, Independence or Unemployment: Why Become Self-Employed?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(2), pages 253-66, May.
- Yannis Georgellis & Howard Wall, 2005.
"Gender differences in self-employment,"
International Review of Applied Economics,
Taylor & Francis Journals, vol. 19(3), pages 321-342.
- Aysit Tansel, 2001. "Wage Earners, Self Employed and Gender in the Informal Sector in Turkey," Working Papers 0102, Economic Research Forum, revised Jan 2001.
- David Blanchflower & A Oswald, 1991. "Self-Employment and Mrs Thatchers Enterprise," CEP Discussion Papers dp0030, Centre for Economic Performance, LSE.
- Mats Hammarstedt, 2004. "Self-Employment Among Immigrants in Sweden -- An Analysis of Intragroup Differences," Small Business Economics, Springer, vol. 23(2), pages 115-126, 09.
- Fujii, Edwin T. & Hawley, Clifford B., 1991. "Empirical aspects of self-employment," Economics Letters, Elsevier, vol. 36(3), pages 323-329, July.
- Raquel Carrasco & Mette Ejrnæs, 2003. "Self-employment in Denmark and Spain: Institution, Economic Conditions and Gender differences," CAM Working Papers 2003-06, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Blanchflower, D.G. & Oswald, A., 1991.
"What Makes an Entrepreneur?,"
Economics Series Working Papers
99125, University of Oxford, Department of Economics.
- Hannu Tervo, 2006. "Regional unemployment, self-employment and family background," Applied Economics, Taylor & Francis Journals, vol. 38(9), pages 1055-1062.
- Johansson, Edvard, 2000. " Self-Employment and Liquidity Constraints: Evidence from Finland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 123-34, March.
When requesting a correction, please mention this item's handle: RePEc:vig:wpaper:0907. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Patricia González Piñeiro)
If references are entirely missing, you can add them using this form.