An Occupational Choice Model for Developing Countries

Konferenzbeitrag

Most occupational choice models introduce only two options for agents: entrepreneurial activities or wage-employment. However, these models represent inadequately the labor force distribution from developing countries, where an important proportion of the total work force are self-employed workers. Some models introduce self-employment as an occupational choice. These works have a common feature : at equilibrium, wage earners belong to the lower end of the income distribution. However, for a large set of developing countries, peasants and small proprietors are part of a self employment sector that can mostly be found in the lower end of the income distribution. In this work, in contrast with previous efforts, self-employment formation is consistent with data from most developing countries. We pay special attention to the conditions under which either the economy ends in a low income equilibrium, where self-employment is the only form of production; or alternatively, a high income equilibrium with a well developed labor market. We study some public policy issues, paying special attention to role of capital markets and the efficiency of schooling.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Proceedings of the German Development Economics Conference, Göttingen 2007 ; No. 15

Classification and Topics

• Classification: Wirtschaft ; Microeconomic Analyses of Economic Development ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: Occupational Choice ; Human Capital ; Economic Development ; General Equilibrium

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gerardo Jacobs
• Event: Veröffentlichung
• (who): Verein für Socialpolitik, Ausschuss für Entwicklungsländer
• (where): Göttingen
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/19871
• Last update: 10.03.2025, 11:43 AM CET