SELF-EMPLOYMENT: 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 an Oaxaca-Blinder...

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Bibliographic Details
Published in:Revista de economía aplicada 2013-10, Vol.21 (62), p.61
Main Authors: Álvarez, Gema, Gradín, Carlos, Otero, Ma Soledad
Format: Article
Language:English
Subjects:
Bias
Earnings
Economic growth
Employees
Entrepreneurs
Entrepreneurship
Families & family life
Labor market
Part time employment
Self employment
Studies
Tenure
Unemployment
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Summary: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 an 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 depending on the worker's previous status in the labor market. Additionally, we show that the observed earnings differential between self- and paid employees is a consequence of the selectivity bias into each labor status. [PUBLICATION ABSTRACT]
ISSN:2632-7627