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Why did self-employment increase so strongly in Germany?

Michael Fritsch (), Alexander Kritikos and Alina Sorgner

Entrepreneurship & Regional Development, 2015, vol. 27, issue 5-6, 307-333

Abstract: Germany experienced a unique rise in the level of self-employment in the first two decades following unification. Applying the nonlinear Blinder-Oaxaca decomposition technique, we find that the main factors driving these changes in the overall level of self-employment are demographic developments, the shift towards service sector employment and a larger share of population holding a tertiary degree. While these factors explain most of the development in self-employment with employees and the overall level of self-employment in West Germany, their explanatory power is much lower for the stronger increase in solo self-employment and in self-employment in former socialist East Germany.

Date: 2015
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Working Paper: Why Did Self-Employment Increase so Strongly in Germany? (2015) Downloads
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DOI: 10.1080/08985626.2015.1048310

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