This paper examines the determinants of labor market transitions into and out of self-employment (own-account work and employer), using panel data from 12 developing countries in multiple regions. Despite cross-country heterogeneity, a few consistent patterns emerge. Entering the labor market...

Poor countries have low rates of wage employment and high rates of self-employment. This paper shows that they also have high rates of unemployment relative to wage employment, and that self-employment is particularly high where the unemployment-wage employment ratio is high. I interpret high...

The focus of this paper is on the choice of the unemployed between becoming an entrepreneur or not. It contributes to the literature by empirically investigating two hitherto neglected issues: What is the impact of risk aversion and personal contact with a role model in shaping the decision to...