Self-Employment - a Way to End Unemployment?: Empirical Evidence from German Pseudo-Panel Data

Daniela Glocker and Viktor Steiner

No 661, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper contributes to the policy-relevant question whether self-employment is a way out of (long-term) unemployment. We estimate the relationship between the entry rate into self-employment and previous (long-term) unemployment on the basis of pseudo-panel data for Germany in the period 1996-2002. The estimation method accounts for cohort fixed effects and measurement errors induced by the pseudo panel structure. We find that previous (long-term) unemployment significantly increases entry rates into self-employment for both men and women. These effects are quantitatively important, both in absolute terms and compared to other potential determinants of self-employment transitions, such as age, the level of vocational qualification and certain household characteristics.

Keywords: self-employment; entrepreneurship; entry rate; start-ups; unemployment; pseudo-panel; age and cohort effects (search for similar items in EconPapers)
JEL-codes: C35 J23 J64 (search for similar items in EconPapers)
Pages: 24 p.
Date: 2007
New Economics Papers: this item is included in nep-ent and nep-lab
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Citations: View citations in EconPapers (27)

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Working Paper: Self-Employment: A Way to End Unemployment? Empirical Evidence from German Pseudo-Panel Data (2007)
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