Self-employment flows and persistence: a European comparative analysis

Mark Taylor ()

No 2011-26, ISER Working Paper Series from Institute for Social and Economic Research

Abstract: We identify patterns of self-employment entry, exit and survival in a sample of EU countries and examine factors that explain individuals’ self-employment experiences within and between countries. We estimate a range of models, including dynamic random effects models that endogenise the initial condition. Our results highlight similarities and differences between countries, and illustrate the importance of age and previous labour market experiences in determining self-employment flows. We also find a high degree of persistence in self-employment across countries, which is most pronounced in France and Germany and least pronounced in Spain. Our results suggest that flows into self-employment are positively associated with the strictness of employment protection legislation.

Date: 2011-10-20
New Economics Papers: this item is included in nep-bec, nep-cis, nep-eec, nep-ent, nep-eur, nep-iue, nep-lab and nep-lma
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