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Title:Self-employment: A Way to End Unemployment? Empirical Evidence from German Pseudo-Panel Data PDF Logo
Authors:Glocker, Daniela
Steiner, Viktor
Issue Date:2007
Series/Report no.:DIW-Diskussionspapiere 661
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.
Subjects:self-employment
entrepreneurship
entry rate
start-ups
unemployment
pseudopanel
age and cohort effects
JEL:C35
J64
J23
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

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