Self-employment and the local business cycle

Helena Svaleryd

No 2013:16, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: The business cycle is likely to be of importance for self-employment rates. When the economy is growing, business opportunities open up and encourage the set-up of new firms. In downturns, self-employment may be a way to avoid unemployment. The strength of these pull and push factors may depend on the amount of human capital a person has. The findings in this paper show that although the local business cycle is of minor importance for total self-employment rates in Sweden, there are heterogeneous effects across groups. People with higher human capital endowments are more likely to be pulled into self-employment, while those with lower human capital endowments are to a larger extent pushed into self-employment. This pattern is particularly strong for women.

Keywords: Self-employment; local business cycle; panel data (search for similar items in EconPapers)
JEL-codes: J21 J24 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2013-08-08
New Economics Papers: this item is included in nep-ent, nep-lab, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as Svaleryd, Helena, 'Self-employment and the local business cycle' in Small Business Economics, 2015, pages 55-70.

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Related works:
Journal Article: Self-employment and the local business cycle (2015)
Working Paper: Self-employment and the local business cycle (2013)
Working Paper: Self-employment and the local business cycle (2013)
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