{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,10,13]],"date-time":"2026-10-13T16:23:43Z","timestamp":1791908623759,"version":"4.3.4"},"reference-count":14,"publisher":"Wiley","issue":"1","license":[{"start":{"date-parts":[[2006,8,8]],"date-time":"2006-08-08T00:00:00Z","timestamp":1154995200000},"content-version":"vor","delay-in-days":7524,"URL":"http:\/\/onlinelibrary.wiley.com\/termsAndConditions#vor"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["J of Applied Econometrics"],"published-print":{"date-parts":[[1986,1]]},"abstract":"<jats:title>Abstract<\/jats:title><jats:p>The paper formulates a self\u2010employment\/paid\u2010employment choice problem that draws upon Knight's notion that the individual responds to the risk\u2010adjusted relative earnings opportunities in each sector. Based on a development of such choice\u2010theoretic considerations, an econometric model is developed with the purpose of empirically examining the determinants of self\u2010employment. The model features simultaneous determination of employment status and earnings, which allows for self\u2010selectivity. The model is estimated using a sample of 4762 individuals from the General Household Survey for 1978. The estimation of the earnings equation enables a calculation of the self\u2010employment\/paid\u2010employment earnings differential and the estimated probit equation for self\u2010employment\/paid\u2010employment status facilitates the prediction of the probability of self\u2010employment. The paper finds that there is positive selection bias in the observed earnings of employees, that the probability of self\u2010employment depends positively on the earnings difference between the two sectors and that education and age are significant determinants of self\u2010employment.<\/jats:p>","DOI":"10.1002\/jae.3950010107","type":"journal-article","created":{"date-parts":[[2007,7,12]],"date-time":"2007-07-12T14:06:32Z","timestamp":1184249192000},"page":"95-108","source":"Crossref","is-referenced-by-count":333,"title":["An empirical analysis of self\u2010employment in the U.K."],"prefix":"10.1002","volume":"1","author":[{"given":"Hedley","family":"Rees","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Anup","family":"Shah","sequence":"additional","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"311","published-online":{"date-parts":[[2006,8,8]]},"reference":[{"key":"e_1_2_1_2_1","volume-title":"The Lognormal Distribution","author":"Aitchison J.","year":"1954"},{"key":"e_1_2_1_3_1","volume-title":"The Inner City: Employmtnt and Industry","author":"Aldrich H.","year":"1980"},{"key":"e_1_2_1_4_1","volume-title":"The Rise and Decline of Small Firms","author":"Boswell J.","year":"1972"},{"key":"e_1_2_1_5_1","first-page":"67","article-title":"On estimating earnings for LDC'","volume":"3","author":"Chiswick C.","year":"1976","journal-title":"Journal of Development Economics"},{"key":"e_1_2_1_6_1","unstructured":"Clark G.(1982) \u2018Recent developments in working pattern.\u2019 Employment Gazette 284\u2013288."},{"key":"e_1_2_1_7_1","doi-asserted-by":"publisher","DOI":"10.2307\/145584"},{"key":"e_1_2_1_8_1","series-title":"Centre for Environmental Studies, Research Series No. 39.","author":"Gudgin G.","year":"1979"},{"key":"e_1_2_1_9_1","volume-title":"Risk, Uncertainty and Profit","author":"Knight F. 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