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Self‐Employment and Wage Earning in Hungary

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  • Catherine Y. Co
  • Ira N. Gang
  • Myeong‐Su Yun

Abstract

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.

Suggested Citation

  • Catherine Y. Co & Ira N. Gang & Myeong‐Su Yun, 2005. "Self‐Employment and Wage Earning in Hungary," Review of Development Economics, Wiley Blackwell, vol. 9(2), pages 150-165, May.
    • Handle: RePEc:bla:rdevec:v:9:y:2005:i:2:p:150-165
    DOI: 10.1111/j.1467-9361.2005.00269.x
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    References listed on IDEAS

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    1. Miller, Robert A, 1984. "Job Matching and Occupational Choice," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 1086-1120, December.
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    Cited by:

    1. Fossen, Frank M. & Büttner, Tobias J.M., 2013. "The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees," Economics of Education Review, Elsevier, vol. 37(C), pages 66-84.
    2. Ma, Xinxin & 馬, 欣欣 & Li, Shi, 2016. "Economic Transition and the Determinants of Self-employment in Urban China: 2007-2013," CEI Working Paper Series 2016-3, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    3. Estrin, Saul & Stephan, Ute & Vujic, Suncica, 2014. "Do Women Earn Less Even as Social Entrepreneurs?," IZA Discussion Papers 8650, Institute of Labor Economics (IZA).
    4. Edwin van Gameren & Ingrid Ooms, 2009. "Childcare and labor force participation in the Netherlands: the importance of attitudes and opinions," Review of Economics of the Household, Springer, vol. 7(4), pages 395-421, December.
    5. Andrea Cutillo & Marco Centra, 2017. "Gender-Based Occupational Choices and Family Responsibilities: The Gender Wage Gap in Italy," Feminist Economics, Taylor & Francis Journals, vol. 23(4), pages 1-31, October.
    6. Xinxin Ma, 2016. "Economic transition and the determinants of self-employment in urban China: 2007–2013," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 14(3), pages 279-307, July.
    7. Dimova, Ralitza & Gang, Ira N., 2007. "Self-selection and wages during volatile transition," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 612-629, September.
    8. Ira N. Gang & Ralitza Dimova, 2004. "Self-Selection And Earnings During Volatile Transition," Departmental Working Papers 200409, Rutgers University, Department of Economics.

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