What Determines Self-employment Choice in India?
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In the last two decades, a vast literature has emerged that aims to explain the characteristics of entrepreneurs, the determinants of occupational choice of individuals and the contexts that promote entrepreneurship.1 However, until recently, the entrepreneurship literature has largely ignored the labor markets of developing countries.
Beginning with the labor surplus model of Lewis (1954), the labor markets of developing countries are viewed as segmented dualistic markets along the formal-informal lines (also see Sen, 1966; Ranis and Fei, 1961; Harris and Todaro, 1970).2 Some studies find evidence against these theories of low level subsisting self-employment in LDCs (Majumdar, 1981; Blau, 1986; Rosenzweig, 1980; Mohapatra et al., 2007). Thus, more recently, a growing body of literature attempts to capture the heterogeneity within the informal sector. This strand of literature argues that the informal sector is a blend of both disadvantaged and competitive sectors...
KeywordsInformal Sector Education Variable Domestic Duty National Sample Survey Organization Land Variable
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