Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/82268 
Year of Publication: 
2013
Series/Report no.: 
Working Paper No. 2013:16
Publisher: 
Institute for Evaluation of Labour Market and Education Policy (IFAU), Uppsala
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.
Subjects: 
Self-employment
local business cycle
panel data
JEL: 
J21
J24
Document Type: 
Working Paper

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