SciELO - Scientific Electronic Library Online

 
vol.34 issue2INEQUALITY OF OUTCOMES VS. INEQUALITY OF OPPORTUNITIES IN A DEVELOPING COUNTRY: AN EXPLORATORY ANALYSIS FOR CHILE author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Services on Demand

Journal

Article

Indicators

Related links

Share


Estudios de economía

On-line version ISSN 0718-5286

Abstract

PUENTES, Esteban; CONTRERAS, Dante  and  SANHUEZA, Claudia. SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGES. Estudios de Economía [online]. 2007, vol.34, n.2, pp.203-247. ISSN 0718-5286.  http://dx.doi.org/10.4067/S0718-52862007000200005.

This paper studies long-term trends of self-employment in Chile. Self-employment is associated with poor job conditions, vulnerability, and instability or informal labor market. Contrary to what is expected, self- employment level does not respond to macroeconomic variables. Using forty-one cross sections of the longest Employment Survey available, we show that there is little correlation of the economic cycle with variations in self-employment. Cohort effects are also unimportant. In fact, age is the most important predictor of self- employment; older people are more likely to be self-employed. In addition, we performed a decomposition of changes in self-employment on changes in coefficients, which are a measure of the returns to individual characteristics, and on changes in characteristics. The results indicate that self-employment should have decreased given the changes in individual characteristics, but was prevented by changes in coefficients. We also find indirect evidence that these changes in parameters are not correlated with macroeconomic variables. Finally, the changes in individual characteristics, such as education and age, and changes in their coefficients account for most of the changes in self-employment

Keywords : informal employment; cohort analysis; oaxaca decomposition.

        · abstract in Spanish     · text in English     · English ( pdf )

 

Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License