G. Gill, Andrew, Choice of employment status and the wages of employees and the self- employed: some further evidence, Journal of applied econometrics , 3(3), 1988, pp. 229-234
Using US data drawn from the 1978 young men NLS sample, this paper replicates a key finding reported by Rees and Shah in their analysis of self-employment using large-scale British data. A wage equation, which allows for sample selectivity, is estimated for subsamples of employees and the self-employed. Despite differences between the data sets and the variables analysed, the NLS results support Rees and Shah's conclusion that there is positive selection bias in the observed earnings of employees.