Arbeitspapier

The formal sector wage premium and firm size for self-employed workers

We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers' managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in self-employment only when they cannot find a salaried job. For these workers self-employment is a secondary/informal form of employment. The Burdett and Mortensen (1998) equilibrium search model is used for illustration as a special case of our more general framework. Empirical evidence from Mexico is provided and demonstrates that firm size wage effects for employees and selfemployed workers are broadly consistent with the model.

Sprache
Englisch

Erschienen in
Series: UCD Centre for Economic Research Working Paper Series ; No. WP13/17

Klassifikation
Wirtschaft
Wage Level and Structure; Wage Differentials
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Thema
Self-employment
Managerial ability
Informal sector

Ereignis
Geistige Schöpfung
(wer)
Bargain, Olivier
El Badaoui, Eliane
Kwenda, Prudence
Strobl, Eric
Walsh, Frank
Ereignis
Veröffentlichung
(wer)
University College Dublin, UCD School of Economics
(wo)
Dublin
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Bargain, Olivier
  • El Badaoui, Eliane
  • Kwenda, Prudence
  • Strobl, Eric
  • Walsh, Frank
  • University College Dublin, UCD School of Economics

Entstanden

  • 2013

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