Self-employment: a way to end unemployment? Empirical evidence from German pseudo-panel data

"This paper contributes to the policy-relevant question whether self-employment is a way out of (long-term) unemployment. We estimate the relationship between the entry rate into self-employment and previous (long-term) unemployment on the basis of pseudo-panel data for Germany in the period 19...

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Bibliographic Details
Main Authors: Glocker, Daniela, Steiner, Viktor
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2007
IZA
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Online Access:https://www.labourline.org/KENTIKA-19292659124910108319-Self-employment-a-way-to-end-u.htm
Description
Summary:"This paper contributes to the policy-relevant question whether self-employment is a way out of (long-term) unemployment. We estimate the relationship between the entry rate into self-employment and previous (long-term) unemployment on the basis of pseudo-panel data for Germany in the period 1996-2002. The estimation method accounts for cohort fixed effects and measurement errors induced by the pseudo panel structure. We find that previous (long-term) unemployment significantly increases entry rates into self-employment for both men and women. These effects are quantitatively important, both in absolute terms and compared to other potential determinants of self-employment transitions, such as age, the level of vocational qualification and certain household characteristics."
Physical Description:25 p.
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