How do country R&D change the allocation of self-employment across different types?

Andrew Burke, Serhiy Lyalkov, Ana Millán, Jose Maria Millan and André Stel
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Andrew Burke: Trinity College Dublin
Serhiy Lyalkov: International University of Andalusia, Santa María de la Rábida Campus
Ana Millán: Pablo de Olavide University
André Stel: Trinity College Dublin

Small Business Economics, 2021, vol. 56, issue 2, No 10, 695-721

Abstract: Abstract We investigate the impact of country R&D on the allocation of self-employment across different types, where types are identified based on occupational status and start-up motive. We first conduct a literature review based on which we consider the self-employed with employees to be of higher ‘quality’ (in terms of their overall contribution to the economy) compared with independent own-account workers, who in turn may be considered of higher quality than dependent self-employed workers. Similarly, we also consider opportunity self-employed to be of higher quality than necessity self-employed. Our empirical analysis then shows that the level of a country’s R&D expenditures increases the share of self-employed with employees and that of opportunity self-employed (i.e. the self-employment types associated with higher quality) at the cost of the shares of dependent self-employed and necessity self-employed. Higher R&D expenditures at the country level thus increase the quality of self-employment in the country.

Keywords: Types of entrepreneurship; Self-employment; R&D; European Working Conditions Survey; J24; L26; L53; O30; O52 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11187-019-00196-z

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