Self-employment and the local business cycle

Helena Svaleryd ()
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Helena Svaleryd: Uppsala Center for Labor Studies, Postal: Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

No 2013:9, Working Paper Series, Center for Labor Studies from Uppsala University, Department of Economics

Abstract: The business cycle is likely to be of importance for self-employment rates. When the economy is growing, business opportunities open up and encourage the set-up of new firms. In downturns, self-employment may be a way to avoid unemployment. The strength of these pull and push factors may depend on the amount of human capital a person has. The findings in this paper show that although the local business cycle is of minor importance for total self-employment rates in Sweden, there are heterogeneous effects across groups. People with higher human capital endowments are more likely to be pulled into self-employment, while those with lower human capital endowments are to a larger extent pushed into self-employment. This pattern is particularly strong for women.

Keywords: Self-employment; local business cycle; panel data (search for similar items in EconPapers)
JEL-codes: J21 J24 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2013-08-28
New Economics Papers: this item is included in nep-eur, nep-mig, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Self-employment and the local business cycle (2015)
Working Paper: Self-employment and the local business cycle (2013)
Working Paper: Self-employment and the local business cycle (2013)
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