The development of self-employment and entrepreneurship has become an increasingly important issue for the transitional economy of Belarus. The role of pecuniary benefits in terms of motivating people towards becoming self-employmed has not been explored before, however, and neither has the question of whether the direction of impact is different for men and women in Belarus.
This paper investigates this question using data from 2006 to 2010 from the Belarusian Household Survey on Incomes and Expenditures (BHSIE) and is based on the multinomial logit choice model (logistic regression). To get selectivity-corrected earnings predictions the methodology proposed by Bourguignon et al. (2007) is applied to the data.
The results obtained show that higher earnings expectations attract women to choose entrepreneurship instead of paid-employment though pecuniary or monetary benefits do not have significant effects on this choice for men. Education, age and perception of risk factors, the paper suggests, also appear to be important influencing factors in terms of choice though they are dependent upon the gender of a given entrepreneur.
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