The Policy Drivers of Self-Employment: New Evidence from Europe

Annabelle Mourougane, Balázs Égert, Mark Baker and Gábor Fülöp

No 8780, CESifo Working Paper Series from CESifo

Abstract: Using cross-country time series panel regressions for the last two decades, this paper seeks to identify the main policy and institutional factors that explain the share of self-employment across European countries. It looks at the aggregate share of self-employed as well as its breakdown by age, skill and gender. The generosity of unemployment benefits, and to a lesser extent, spending on active labour market policies appear to be robust determinants of the long-term share of self-employed in European countries. No significant relation could be identified between the stringency of employment protection and aggregate self-employment. However, there are significant, and oppositely signed, impacts on high- and low-skilled self-employed separately. Both the tax wedge and the minimum wage appear to be related positively to the share of self-employed in the long term, but the relation holds for some categories of workers only.

Keywords: self-employment; labour market; labour market regulations; labour market institutions; Europe (search for similar items in EconPapers)
JEL-codes: J01 J21 J41 J48 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-eec and nep-iue
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Related works:
Working Paper: The policy drivers of self-employment: New evidence from Europe (2021)
Working Paper: The policy drivers of self-employment: New evidence from Europe (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8780

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