On the nature of micro-entrepreneurship

Evidence from Argentina

Gabriel V. Montes Rojas, Lucas Siga

    Research output: Contribution to journalArticle

    Abstract

    We analyse the nature of micro-entrepreneurship in Argentina. We focus on whether the sector resembles its counterpart in industrialized countries, characterized by the risk-taking nature of the entrepreneurial activity, or if it is the result of labour market distortions and disguised unemployment, as in the dual economy hypothesis. Our results suggest a segmentation of the micro-entrepreneur sector. Both young uneducated and middle aged highly educated salaried workers have the highest likelihood of becoming entrepreneurs. However, the first segment has a high probability of becoming own-account workers, while the probability of becoming micro-entrepreneurs with employees is strictly increasing in both age and education. Moreover, the probability of entrepreneur failure (as measured by the transition to the salaried sector) has an inverted U shape, implying that both high and low skill individuals are more likely to remain entrepreneurs.

    Original languageEnglish (US)
    Pages (from-to)2667-2680
    Number of pages14
    JournalApplied Economics
    Volume41
    Issue number21
    DOIs
    StatePublished - Sep 1 2009

    Fingerprint

    Entrepreneurship
    Entrepreneurs
    Argentina
    Workers
    Risk taking
    Entrepreneurial activity
    Segmentation
    Education
    Inverted-U
    Developed countries
    Dual economy
    Employees
    Labour market
    Unemployment

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    On the nature of micro-entrepreneurship : Evidence from Argentina. / Montes Rojas, Gabriel V.; Siga, Lucas.

    In: Applied Economics, Vol. 41, No. 21, 01.09.2009, p. 2667-2680.

    Research output: Contribution to journalArticle

    Montes Rojas, Gabriel V. ; Siga, Lucas. / On the nature of micro-entrepreneurship : Evidence from Argentina. In: Applied Economics. 2009 ; Vol. 41, No. 21. pp. 2667-2680.
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