Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/171287 
Year of Publication: 
2017
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research No. 932
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This study examines dynamics of solo self-employment. In particular, we investigate the extent of true state dependence and cross state dependence, i.e., whether experiencing solo selfemployment causally affects the probability of becoming an employer in the future. We use data from the German Socio-Economic Panel to estimate dynamic multinomial logit models. Our results show that the extent of true (cross) state dependence is rather small. The observed persistence in solo self-employment as well as transitions from solo self-employment to employership can largely be explained by observed and unobserved heterogeneity.
Subjects: 
state dependence
dynamic multinomial logit
solo self-employment
own-account worker
stepping stone
German SOEP
JEL: 
J23
J62
Document Type: 
Working Paper

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