Self-Employment and Wage Earning: Hungary During Transition
29 Pages Posted: 9 Oct 2002
Date Written: September 2002
Abstract
We examine the earnings determinants of the self-employed and wage earners in Hungary in the mid-1990's, taking into account two forms of selection: selection into working or nonworking for every individual in our sample and selection into self-employment or wageearning 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. We 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. We also find that the earnings determinants of the two sectors are not significantly different from each other.
Keywords: Self-selection, Switching, Self-employment, Wage-earning Jobs, Economies in Transition
JEL Classification: C34, J31, P23
Suggested Citation: Suggested Citation
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