TY  - RPRT
        AU  - Earle, John S.
AU  - Sakova, Zuzana
        TI  - Entrepreneurship from Scratch: Lessons on the Entry Decision into Self-Employment from Transition Economies
        PY  - 1999/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 79
        UR  - https://www.iza.org/publications/dp79
        AB  - This paper exploits the rapid rise in self-employment rates in post-communist Eastern Europe as a valuable "quasi-experiment" for understanding the sources of entrepreneurship. A relative demand-supply model and an individual sectoral choice model are used to analyze a 1993 survey of 27,000 adults in six transition economies. Estimated self-employment earnings premia are positive, and the data imply positive selection into both employee and self-employment status. Structural probit estimates show the probability of self-employment entry is unassociated with former Communist Party affiliation but positively related to schooling, pre-transition family income, receipt of property in restitution, pre-communist family business-holding, and predicted earnings differential. Cross-country variation in predicted self-employment entry rates and relative earnings provide evidence on the demand and supply factors affecting the decision to become an entrepreneur.
        KW  - Entrepreneurship
KW  - self-employment
KW  - transition
KW  - small business
KW  - selection bias
KW  - structural probit Eastern Europe
KW  - Bulgaria
KW  - Czech Republic
KW  - Hungary
KW  - Poland
KW  - Russia
KW  - Slovakia
        ER  -