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Autoempleo y Machine Learning: Una aplicación para España
[Self-employment and Machine Learning: An application for Spain]

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  • Gutierrez-Lythgoe, Antonio

Abstract

Research in the field of Artificial Intelligence has made considerable progress in recent years, demonstrating its effectiveness in predicting and classifying discrete decisions. However, these advances have been relatively underutilized in economic research due to the lack of links with economic theories that explain the decision-making process of agents. In this paper, we propose a microeconomic framework for decision trees, a machine learning technique, to establish a more solid connection with economic theory and encourage its application in the field of discrete choice. To do so, we rely on data from the 2019 EU-SILC for Spain. Through comparison with a conventional multinomial logit model, we demonstrate the usefulness of this economic perspective for studying the sociodemographic factors associated with self-employment in Spain. The results suggest that incorporating economic foundations can significantly improve the accuracy of predictions and the ability to draw individual sociodemographic profiles for self-employment.

Suggested Citation

  • Gutierrez-Lythgoe, Antonio, 2023. "Autoempleo y Machine Learning: Una aplicación para España [Self-employment and Machine Learning: An application for Spain]," MPRA Paper 117275, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117275
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    References listed on IDEAS

    as
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    10. Philipp Koellinger & Maria Minniti & Christian Schade, 2013. "Gender Differences in Entrepreneurial Propensity," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(2), pages 213-234, April.
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    More about this item

    Keywords

    Artificial Intelligence; Machine Learning; Microeconomics; Self-employment; multinomial logit;
    All these keywords.

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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