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Self‐Employment and Wage Earning in Hungary
Author(s) -
Co Catherine Y.,
Gang Ira N.,
Yun MyeongSu
Publication year - 2005
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2005.00269.x
Subject(s) - wage , earnings , selection (genetic algorithm) , economics , sample (material) , labour economics , self employment , demographic economics , entrepreneurship , accounting , chemistry , finance , chromatography , artificial intelligence , computer science
This paper examines the earnings determinants of the self‐employed and wage earners in Hungary in the mid‐1990s, taking into account two forms of selection: selection into working or non‐working for every individual in its sample and selection into self‐employment or wage‐earning jobs for workers only. Previous studies use switching regression to examine the returns to individual characteristics, taking into account only selection into self‐employment or wage‐earning jobs. The authors find that the estimated returns to individual characteristics when accounting for both forms of selection, differ from estimates correcting for only selection into self‐employment or wage‐earning jobs. They also find that the earnings determinants of the two sectors are not significantly different from each other.