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dc.titleSelf-employment in the Andean Countries: Motivations and the Link to Productivity
dc.contributor.authorLeal Calderon, Zulima
dc.contributor.authorChacón, Nelson
dc.contributor.orgunitCountry Department Andean Group
dc.date.available2017-10-31T00:00:00
dc.date.issue2017-10-01T00:00:00
dc.description.abstractWe look at the possible channels in which self-employment can harm productivity outcomes in the Andean region and the motivations that incentive workers to opt for self-employment. We estimate quantile regressions with the purpose of identifying whether there is a monetary income premium for those at self-employment compared to wage earners at various levels of income. We find that there is a negative income premium for self-employed workers at the bottom 25% of the income distribution in the Andean countries, except for Venezuela, where although there is a positive income premium, the magnitude is very small to generate enough incentive to prefer self-employment. Our estimations also indicate that self-employed workers at the top 25% of the income distribution have larger positive income premiums. The evidence suggests two types of self-employed workers, one composed of higher income earners, and the other one by most workers, that given the absence of formal job opportunities choose self-employment, but would be better off in terms of income as dependent workers.
dc.format.extent30
dc.identifier.doihttp://dx.doi.org/10.18235/0009370
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Self-employment-in-the-Andean-Countries-Motivations-and-the-Link-to-Productivity.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectProductivity
dc.typeTechnical Notes
idb.identifier.pubnumberTechnical Notes
idb.operationRG-P1684
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