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Self-employment or paid employment as the first job: Evidence from Spain by nationality

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  • Antonio Caparrós Ruiz
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    Abstract

    Purpose – The aim of this paper is to offer new empirical evidence for Spain about the transition into self-employment or paid employment of potential entrants to the labor market and their duration in both segments of the market. Design/methodology/approach – The econometric methodology consists of estimating discrete-choice models and survival models, controlling for personal characteristics, job characteristics, and unobserved heterogeneity. Findings – One of the main results of this paper is that the immigrants are a disadvantaged group with regard to entry into self-employment as a first job. Moreover, once they enter self-employment, they are more likely than native Spaniards to exit from it. Practical implications – The results obtained in this paper are of interest to policy makers seeking to design economic policies that promote the assimilation of immigrants into the Spanish labor market. Originality/value – The topic discussed in this paper and the distinction made by the workers according to nationality is unknown in economic literature in Spain.

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal International Journal of Social Economics.

    Volume (Year): 37 (2010)
    Issue (Month): 12 (October)
    Pages: 951-969

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    Handle: RePEc:eme:ijsepp:v:37:y:2010:i:12:p:951-969

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    Related research

    Keywords: Employment; Immigration; Jobs; Self employed workers; Spain;

    References

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    1. Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-59, November.
    2. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
    3. David B. Audretsch & Roy Thurik & Andre van Stel & M.A. Carree, 2006. "Does Self-Employment Reduce Unemployment?," Papers on Entrepreneurship, Growth and Public Policy 2005-07, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    4. Carrasco, R., 1997. "Transitions to and from Self-Employment in Spain: An Empirical Analysis," Papers 9710, Centro de Estudios Monetarios Y Financieros-.
    5. David G. Blanchflower & Phillip B. Levine & David J. Zimmerman, 1998. "Discrimination in the Small Business Credit Market," NBER Working Papers 6840, National Bureau of Economic Research, Inc.
    6. Blau, Francine D & Graham, John W, 1990. "Black-White Differences in Wealth and Asset Composition," The Quarterly Journal of Economics, MIT Press, vol. 105(2), pages 321-39, May.
    7. Y Georgellis & J G Sessions & N Tsitsianis, 2005. "Self-Employment Longitudinal Dynamics: A Review of the Literature," Economic Issues Journal Articles, Economic Issues, vol. 10(2), pages 51-84, September.
    8. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
    9. Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
    10. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
    11. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
    12. Johnson, William R, 1978. "A Theory of Job Shopping," The Quarterly Journal of Economics, MIT Press, vol. 92(2), pages 261-78, May.
    13. Cressy, Robert, 1996. "Are Business Startups Debt-Rationed?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1253-70, September.
    14. Andersson Joona, Pernilla & Wadensjö, Eskil, 2008. "A Gender Perspective on Self-Employment Entry and Performance as Self-Employed," IZA Discussion Papers 3581, Institute for the Study of Labor (IZA).
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