The Effects of Displacement on Self-employment Survival

Jenny Nykvist ()
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Jenny Nykvist: Research Institute of Industrial Economics (IFN), Postal: and Konjunkturinstitutet, Stockholm, Sweden

No 764, Working Paper Series from Research Institute of Industrial Economics

Abstract: A large literature has studied the effect of displacement on labor market outcomes in general, but none has evaluated how the displaced manage as self-employed. This paper studies how the survival of the business is affected by displacement in connection to entry, using a discrete-time proportional hazard model on a matched sample of displaced and non-displaced individuals. The main result of the paper is that, as a consequence of previous displacement, the probability of switching from self-employment to paid employment decreases and the probability of switching to unemployment is unaffected.

Keywords: Self-employment; Survival; Displacement (search for similar items in EconPapers)
JEL-codes: J24 J63 J65 M13 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2008-09-24
New Economics Papers: this item is included in nep-bec, nep-ent and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0764

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