Abstract

AGUILAR, José Gabriel  and  ALLET ACUNA, René. Inclusion of propensity to self-employment in the labor market matching process. Prob. Des [online]. 2021, vol.52, n.207, pp.107-131.  Epub Mar 07, 2022. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2021.207.69741.

The literature on the labor matching process tends to focus on developed countries while ignoring less-developed countries, which are characterized by the absence of unemployment insurance and a high number of self-employed workers. This article incorporates the occupational choice of self-employment into a labor market matching function (MF) through a choice process using agent-based models and an "entrepreneurial propensity" indicator based on market wages. Findings show that the possibility of self-employment improves the average earnings of those who choose to be employed, while reducing labor market rigidities.

Keywords : labor market; propensity to self-employment; matching function (MF); agent-based model.

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