Banerjee, Tanima
Occupational choice in developing countries: Self employment versus wage employment a conceptual framework - Artha Vijanan - 63(4), Dec, 2021: p.333-359
In existing theories, richer people get higher loans, become entrepreneurs and earn high, people at the middle of wealth distribution choose self-employment, and people who join wage employment have the least income. However, in developing nations, regular wage employment offers higher income than self-employment, and to justify these findings, a partial equilibrium model is developed. Given lack of collateral, occupational choices are based on human capital possession and capital availability. In this model, in a skill-based dual sector economy, self-employment generates lower income than regular wage employment with discriminatory tastes of employers having an influence on occupational choices as well.- Reproduced
Occupational choice in developing countries: Self employment versus wage employment a conceptual framework - Artha Vijanan - 63(4), Dec, 2021: p.333-359
In existing theories, richer people get higher loans, become entrepreneurs and earn high, people at the middle of wealth distribution choose self-employment, and people who join wage employment have the least income. However, in developing nations, regular wage employment offers higher income than self-employment, and to justify these findings, a partial equilibrium model is developed. Given lack of collateral, occupational choices are based on human capital possession and capital availability. In this model, in a skill-based dual sector economy, self-employment generates lower income than regular wage employment with discriminatory tastes of employers having an influence on occupational choices as well.- Reproduced