Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/94337 
Year of Publication: 
1999
Series/Report no.: 
Working Paper No. 1999-12
Publisher: 
Rutgers University, Department of Economics, New Brunswick, NJ
Abstract: 
We estimate the determinants of earnings for both the self-employed and wage/salary sectors in an economy undergoing transition from socialism to greater market orientation. We adopt a (full information) MLE methodology in addition to Heckman's two-step method, while taking both participation and self-employment decisions into account. We use the Hungarian Household Panel Survey for 1994. We find that the return to characteristics are not significantly different between self-employed and wage/salary sectors. However, when we also account for the dispersion of earnings, the structure of the earnings between the self- and wage/salary employed are different
Subjects: 
decomposition
self-employment
self-selection
switching
transition
JEL: 
C34
J31
P23
Document Type: 
Working Paper

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