Dependent self-employment across Europe: involuntariness, country's wealth and labor market institutions
Virginia Hernanz and
UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía
This paper investigates the degree of involuntariness in the entrepreneurial activity ofthe dependent solo self-employed, as well as the effect of the country's wealth and labormarket institutions. Using the unique information available in the 2017 European LaborForce Survey (EU-LFS) for 25 countries, we can properly identify the dependent soloself-employed and analyze to what extent they behave in accordance with anoccupational choice model when making their self-employment decision. For that, weaccount for the reasons why they enter into self-employment (voluntarily orinvoluntarily either out of necessity or requested by the former employer). The resultsindicate that involuntary self-employment, mostly due to being required by previousemployer, significantly increases the probability of being dependent solo versus nondependent self-employed. The wealthiest countries have a lower incidence of this groupof workers, mainly if they are involuntary self-employed. Moreover, labor marketinstitutions that decrease the flexibility of paid employment tend to increase theincidence of dependent solo self-employment. These results point to this group ofworkers being particularly vulnerable with the degree of vulnerability significantlyincreasing for those self-employed with a lesser degree of occupational choice.
Keywords: Labor; Economic; Conditions; Involuntariness; Dependent; Solo; Self-Employed (search for similar items in EconPapers)
JEL-codes: L26 L24 J28 J08 J01 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:31788
Access Statistics for this paper
More papers in UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía
Bibliographic data for series maintained by Ana Poveda ().