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The emergence of new entrepreneurs in Europe

Author

Listed:
  • Emilio Congregado
  • José María Millán
  • Concepción Román

Abstract

This work tries to shed some light on the decision of becoming self-employed with and without employees, distinguishing between paid-employment and unemployment as starting status and exploring if the exposure to foreign competition also influences this decision. In doing so, we apply binary and multinomial logit models to data drawn from the European Community Household Panel for the EU-15 (ECHP, 1994–2001). Thus, we provide some evidence supporting the existence of different factors affecting each considered transition in terms of intensity of the causal relationship. Finally our study also suggests the existence of a negative relationship between the degree of openness and the probability of become entrepreneur, across the EU-15 countries, as some theoretical models suggest.

Suggested Citation

  • Emilio Congregado & José María Millán & Concepción Román, 2014. "The emergence of new entrepreneurs in Europe," International Economics, CEPII research center, issue 138, pages 28-48.
    • Handle: RePEc:cii:cepiie:2014-q2-138-2
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    File URL: http://www.sciencedirect.com/science/article/pii/S2110701714000109
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    Citations

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    Cited by:

    1. Gnangnon, Sèna Kimm, 2021. "Effect of Development Aid on Productive Capacities," EconStor Preprints 233973, ZBW - Leibniz Information Centre for Economics.
    2. Cowling, Marc & Millán, José María & Yue, Wei, 2019. "Two decades of European self-employment: Is the answer to who becomes self-employed different over time and countries?," Journal of Business Venturing Insights, Elsevier, vol. 12(C).
    3. Iyad SNUNU, 2022. "Transitions into self-employment in European Union and Israel: Field study," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(633), W), pages 69-88, Winter.
    4. André Stel & Ana Millán & José María Millán & Concepción Román, 2018. "The relationship between start-up motive and earnings over the course of the entrepreneur’s business tenure," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 101-123, January.
    5. Andrew Burke & Serhiy Lyalkov & Ana Millán & José María Millán & André Stel, 2021. "How do country R&D change the allocation of self-employment across different types?," Small Business Economics, Springer, vol. 56(2), pages 695-721, February.

    More about this item

    Keywords

    Entrepreneurship; Self-employment; Occupational choice; Europe;
    All these keywords.

    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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