Using microdata files from the Survey of Self-Employment, , this study employs a series of binomial logistic regressions to examine earnings determinants and factors influencing the likelihood of self-employed Canadians to own Registered Retirement Savings Plans RRSPs and health-related benefits coverage. Two policy-related issues surfaced: I the vulnerable segments include women, own-account entrepreneurs, involuntarily selfemployed, low-tenure entrepreneurs, and self-employed with dependent children; 2 income, wealth, savings behaviour, and membership in associations are significant factors that resurface repeatedly in benefits models.
Combined with previous research, these findings have inspired several policy options, discussed at the end of this report. Simon Fraser University. About Summit What is Summit?
Delic, Senada. Date created:. The author has placed restrictions on the PDF copy of this thesis. In contrast, some workers voluntarily left SOEs to become self-employed employers. If the effects of those who left voluntarily is greater than those who were displaced, the wage premium should positively affect the choice to become a self-employed employer or an own-account worker.
These results indicate that the choice to become self-employed does not result from the perceived economic gains and benefits; it is more likely an involuntarily choice or behavior. In other words, a worker is pushed into the self-employed sector to make a living. Based on these results, in the self-employed worker group, the business creation hypothesis is also rejected in both periods. This indicates that the choice to become an own-account worker results from perceived economic gains and benefits.
Therefore, this is perhaps a voluntarily behavior among the own-account workers group, the business creation hypothesis is supported in the SOE reform period. The business creation hypothesis is rejected again in each region. This paper provides evidence on the determinants of self-employment for urban registration residents and migrants in urban China.
Using CHIP, the employment status is divided into four categories: self-employed employers, own-account workers, employees, and the unemployed. Several major conclusions emerge.
As a result, a section of workers were displaced, and some of them entered into informal sectors. Models Firstly, to explicate the determinants of the self-employed in urban China, the employment status probability function is estimated using a multinomial logit model, which is represents in Equation 1. It is thought that registration change may influence the choice of employment status, so we add a registration change dummy a binary variable coded 1 if the worker experienced a registration change and 0 otherwise. Further, is a constant and u is the error term. Section 4 states descriptive statistics and estimated results, and Section 5 presents the main conclusions. From the general-equilibrium model to a probabilistic-choice model Pages Wit, Gerrit.
First, compared with the employee, holding other factors e. Second, the effects of the sample-selection-bias-corrected wage premium for self-employed employers are insignificant. The business creation hypothesis is rejected, while the disguised unemployment hypothesis is supported, showing that the self-employed workers possibly works in sectors with lower economic benefits. Third, considering the influence of all the factors: the wage level categories wage levels in the public and private sectors , the entry period categories the SOE reform period and the recent period , the age categories aged 50 and over, and aged below 50 , and the regional categories the East, the Central, and the West regions , robust checks were conducted.
In the own-account workers group, the business creation hypothesis is nearly rejected again; in fact, it is only supported for workers who entered the self-employment sector in the SOE reform period entered early into the self-employment sector group , and workers aged over These estimated results revealed that compared with employees, self-employed employers and own-account workers do not gain more, and there seemingly are no better choices in urban China.
The one of reasons is that an employer has to face business risks and financial constraints. If the self-employed employer e. Financial constraint problems already exist in China. It is known that the public banks do not like to lend to small private firms, so most small firms gain financial support through informal financial markets e. The estimated results in this paper showed that the effect of household income on the self- employed employer group is greater than that for the other groups. In order to promote more new business for greater economic growth in the future, the Chinese government should establish and implement financial support policies for small firms.
Finally, although we conducted an empirical study to reveal the determinants of self-employment and used the hypothesis tests discussed in this paper, there are two points worthy of attention. First, because we utilized one period of cross-sectional data, there might be heterogeneity and endogeneity problems, and a study using panel data should be conducted in the future. Second, this paper is a static analysis for self-employment.
It is thought that empirical studies on dynamic changes in self-employment the transition into and exit from self- employment are also important issues Le, 12 , so dynamic analysis should be taken in the future studies. Based on the survey data used in the paper and firm classification rules, we defined self-employed workers as those who work in a small firm with less than eight employees or who work in a firm made up entirely of the self-employed worker and unpaid family members.
ILO indicated that working in the informal sector also can contribute economic development for developing countries. Journals by Subject. Journals by Title. Business Start-Ups or Disguised Unemployment? Author s Xinxin Ma. Several major con-clusions emerge. Second, the influence of the wage premium on the self-employed employer is negatively significant, and the influence of the wage premium on the own-account workers is insignificant.
These results reveal that compared with employees, being a self-employed or own-account worker is seemingly not a better choice for employment in urban China; being self-employed is similar to disguised unemployment. Received 11 July ; accepted 1 August ; published 4 August 1. Introduction The self-employed sector is a representative informal sector of the employment market as noted in previous studies 1. Methodology 2. Models Firstly, to explicate the determinants of the self-employed in urban China, the employment status probability function is estimated using a multinomial logit model, which is represents in Equation 1.
In addition, because there are regional disparities Table 1. Cite this paper Ma, X. Chinese Studies , 5 , Management Science, 36, The Review of Economics and Statistics, 72, Karmel Eds. Journal of Political Economy, 95, The Self-Employment Experience of Immigrants.
The Journal of Human Resources, 21, Do Husband Matter? Married Women Entering Self-Employment. Small Business Economics, 13, Eco- nomic Development and Cultural Change, 53, London: I. China Economic Review, 23, Self-Selection and Wages during Volatile Transition. Journal of Comparative Economics, 35, China Economic Review, 13, Journal of Labor Economics, 18, Labor Economics, 7, Journal of Political Economy, 97, Some Empirical Aspects of Entrepreneurship. American Economic Review, 79, Does Entrepreneurship Pay?
The Journal of Political Economy, , Communist and Post-Communist Studies, 33, The American Economic Review, 60, Journal of Political Economy, , Geneva: ILO. Oxford: Oxford University Press. Empirical Studies of Self-Employment. The youth are the most affected by the high unemployment especially in Kenya. Various policy interventions have been put in place to create enabling environment for employment creation in Kenya for example the youth enterprise development and uwezo fund.
Self-employment is argued to have a high employment creation potential. However, socio-economic and individual determinants of self-employment in Kenya are not clear. The study sought to: first, empirically examine the relationship between self-employment and socio-economic characteristics among the youth in Kenya.
Secondly, it sought to examine differences in the characteristics of young men and women in self-employment in Kenya. The results show that education plays a significant role in determining whether one engages in self-employment or wage employment. Access to electricity and piped water also was established to play a significant.