Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18393
Authors: 
Glocker, Daniela
Steiner, Viktor
Year of Publication: 
2007
Series/Report no.: 
DIW Discussion Papers 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

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