Self-Employment and Wage Earning in Hungary (original) (raw)

Self-Employment and Wage Earning: Hungary During Transition

SSRN Electronic Journal, 2002

Self-Employment and Wage Earning: Hungary During Transition * 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 one another.

Self-employment and unemployment relationship in Romania – Insights by age, education and gender

Economic Research-Ekonomska Istraživanja

We check on the short term if self-employment in Romania influences unemployment and vice versa. Age, education and gender characteristics treat both variables, and self-employment considers both cases with and without employees. The objective is to look at the job creation and unemployment reduction in quarterly variation during the 1999Q1-2017Q3 period. On autoregressive models, we apply the Toda and Yamamoto (1995) procedure, detailed by Giles (2011), to assess for Granger Causality. We found for unemployment rates a push effect in the self-employment rate for adults and youth with low education level to self-employment without employees' rate for adults and self-employment with employees' rate for old adults. We establish a 'Schumpeter' effect for the adult with a low level of education self-employment to unemployment, for adults' males with tertiary education and selfemployed, and older adults self-employed without employees to unemployment. We conclude that unemployment work as an inclusion mechanism for some vulnerable groups but inefficient for others. Self-employment with employees is less diversified, indicating a high-risk aversion and low start-up effect. In general, the labour market presents a unidirectional flexibility effect.

Switching Models with Self-Selection: Self-Employment in Hungary

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Self-employment – determinants and rewards in 33 countries

This paper explores the cross-national variation in patterns of self-employment using data from World Inequality Study, a database compiled from high quality, representative national samples from 33 nations. Our main goal is to evaluate the 1) marginalization and 2) family embeddedness theories in light of empirical evidence for a broad array of countries and historical periods. We first examine the heterogeneity of self-employment in various national and historical settings and next turn to the analysis of labour market returns to small scale entrepreneurship. Our analysis considers a broad range of labour market characteristics and addresses the question of whether the self-employed enjoy above-average financial returns or tend to be outcasts of the world of waged employment. Multilevel probit models accounting for economic development; basic features of political regimes and a range of respondents' family and labour market characteristics show that economic development is ass...

Employees Who Become Self-Employed: Do Labour Income and Wages Have an Impact?

2006

This paper analyzes the self-employment decision among Swedish-born male employees. The main objective of the paper is to investigate the impact of the relation between the actual and the predicted income on the probability to become self-employed. The predicted income is calculated from a standard income regression with controls for age, education, family status, family background and place of residence.

WAGE DIFFERENCES BY GENDER, WAGE AND SELF EMPLOYMENT IN URBAN TURKEY

This paper explains wage differences by gender, wage and self employment in an urban setting in Turkey. Data employed is taken from the 1994 Household Income Survey of the State Institute of Statistics (SIS) of Turkey. The Oaxaca decomposition of the wages into discrimination and endowment components indicates the existence of a relatively higher discrimination in the wage employment than in the self employment. In the context of returns to education, self employment provides the highest returns for men in self employment. This shows that education is highly valued in the self employment than in the wage employment.

Long-run trends in earnings and employment in Hungary, 1972-1996

2000

Transition from socialist to capitalist economy led to enormous changes in earnings and employment. In our study a long-horizon descriptive analysis is presented about the major trends, including the last fifteen years of socialism. Education, gender, calendar time, age and vintage effects are separately analyzed. Aggregate (quasi-) panel analysis is used to assess the role of labor demand and labor supply, concluding that exogenous supply factors explained most of what happened before the transition, while the transition itself was dominated by large labor demand shocks. These demand shocks are in large part structural, as opposed to cyclical, and are highly correlated with vintage, gender and education. The main results are summarized in a list of stylized facts.

Characteristics of self-employment: A refuge from unemployment or road to entrepreneurship

This paper investigates the characteristics of self-employment in a transitional economy, drawing upon Riinvest’s Labour Force and Household Survey evidence from Kosova. Findings based on multinomial logit analysis distinguish employers (i.e., business owners) from own-account workers (i.e., selfemployed) and compare both groups to employees. The paper finds that a switch to own-account workers status is used by individuals as a fallback option to escape unemployment. Individuals may be pushed into own-account status by a lack of work opportunities. Findings also show that remittances have a negative relationship with self-employment. Statistical tests reject the pooling of any of these categories, suggesting significant differences in characteristics of employers and the self-employed.

Switching from Paid Employment to Entrepreneurship: the effect on individuals' earnings

Entrepreneurship and Growth in …, 2009

The aim of this research work is to examine the impact of switching from paid employment to business ownership on individuals’ incomes. The study makes use of a Portuguese longitudinal matched employer-employee data set including extensive information on the mobility of workers and business owners for the period 1995-2003. We account for multiple determinants of wage earnings, such as individual attributes, employer characteristics, and individuals’ job careers. Results confirm that there is an earnings penalty for those who enter self-employment. Results also show that smaller firms pay lower wages. When separating opportunity from necessity driven entrepreneurs, we find that the earnings penalty fades away for those who switch from paid employment to business ownership directly without a non-employment spell, while the earnings penalty is especially significant for those who become business owners after a stretch in unemployment.