Self-Employment and Queues for Wage Work: Evidence from Chile
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Self-employment can be considered as either the result of a self-selection process or areﬂection of rigidities and skill mismatch in the labour market or both. We estimate a doubleselection model where individuals queue for wage work instead of being self-employed in the ﬁrststage, followed by employers selecting from the queue in the second. We ﬁnd statistical supportfor the double selection model, implying that some individuals are self-employed because theycannot ﬁnd wage work, while other self-select to be self-employed. Individuals with higher educationare more often chosen as wage workers, and belonging to an ethnic group decreases the likelihood ofbeing chosen. Additionally, earnings equations suggest that high ability individuals perform better inboth the wage work and self-employment sectors.
Artículo de publicación ISI
DOI: DOI: 10.1002/jid.3074
Cita del ítemJournal of International Development Octubre, 2015
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