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Individual and place-based drivers of self-employment in Chile

Modrego, F., Paredes, D. & Romani, G., Aug-2017, In : Small Business Economics. 49, 2, p. 469-492 24 p.

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  • Individual and place-based drivers of self-employment in Chile

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DOI

  • Felix Modrego
  • Dusan Paredes
  • Gianni Romani

This paper analyzes the importance of individual and place characteristics on the selection into self-employment in Chile. Following a structural and multilevel empirical approach, we test whether both sets of variables explain the variation of individual wages, self-employed earnings, and the propensity of being in independent work. The results indicate that while most of the variation in these three outcomes is explained by individuals' traits, place-related variables account for a non-negligible share of spatial variation. Second, as suggested by occupational choice theories, the propensity of being in self-employment positively correlates with larger expected earning differentials, but only in the case of employers. This, along with other results, suggests that while employers seem to choose their occupational status, own accounts in Chile seem to respond to factors pushing them into self-employment.

Original languageEnglish
Pages (from-to)469-492
Number of pages24
JournalSmall Business Economics
Volume49
Issue number2
Publication statusPublished - Aug-2017
Externally publishedYes

    Keywords

  • Self-employment, Occupational choice, Human capital, Location theories, ECONOMIC-GEOGRAPHY, INCREASING RETURNS, START-UPS, ENTREPRENEURSHIP, MARKET, DETERMINANTS, DYNAMICS, POLICY, GROWTH, ACHIEVEMENT

ID: 101462446