SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGES

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 se...

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Autores principales:	Puentes,Esteban, Contreras,Dante, Sanhueza,Claudia
Lenguaje:	English
Publicado:	Universidad de Chile. Departamento de Economía 2007
Materias:	informal employment cohort analysis oaxaca decomposition
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862007000200005
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spelling	oai:scielo:S0718-528620070002000052008-01-28SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGESPuentes,EstebanContreras,DanteSanhueza,Claudia informal employment cohort analysis oaxaca decomposition 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-employmentinfo:eu-repo/semantics/openAccessUniversidad de Chile. Departamento de EconomíaEstudios de economía v.34 n.2 20072007-12-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862007000200005en10.4067/S0718-52862007000200005
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	informal employment cohort analysis oaxaca decomposition
spellingShingle	informal employment cohort analysis oaxaca decomposition Puentes,Esteban Contreras,Dante Sanhueza,Claudia SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGES
description	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
author	Puentes,Esteban Contreras,Dante Sanhueza,Claudia
author_facet	Puentes,Esteban Contreras,Dante Sanhueza,Claudia
author_sort	Puentes,Esteban
title	SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGES
title_short	SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGES
title_full	SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGES
title_fullStr	SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGES
title_full_unstemmed	SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGES
title_sort	self-employment in chile, long run trends and education and age structures changes
publisher	Universidad de Chile. Departamento de Economía
publishDate	2007
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862007000200005
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SELF-EMPLOYMENT IN CHILE, LONG RUN TRENDS AND EDUCATION AND AGE STRUCTURES CHANGES

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