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The sustainability of start-up firms among formerly wage workers

Begoña Cueto () and Fernando Muñoz-Bullón ()

DEE - Working Papers. Business Economics. WB from Universidad Carlos III de Madrid. Departamento de Economía de la Empresa

Abstract: In this paper we analyse the survival of start-up firms among formerly wage workers in Spain. In particular, we address the question of how long do these workers remain self-employed before entering into unemployment or returning to a new paid-employment, using well-known duration model techniques. Results show that a higher survival rate in self-employment is associated to men, prime-age workers and individuals with higher previous labour turnover. Moreover, longer unemployment spells are found to speed up the rate of transition to non-employment and to reduce that to paid employment. Finally, the probability of exiting decreases with duration in self-employment.

Keywords: Self-employment; Duration; analysis (search for similar items in EconPapers)
JEL-codes: J23 (search for similar items in EconPapers)
Date: 2008-06
New Economics Papers: this item is included in nep-ent and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:cte:wbrepe:wb083108

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