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Explaining International Variations in Self-Employment: Evidence from a Panel of OECD Countries

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  • Simon C. Parker

    ()
    (University of Durham)

  • Martin T. Robson

    ()
    (University of Durham)

Abstract

Organisation for Economic Cooperation and Development (OECD) data from 1972 to 1996 reveals substantial differences in the levels and trends of self-employment rates across countries. This article uses recently developed panel integration and cointegration techniques to explore the determinants of aggregate self-employment rates. We find that within the panel, self-employment rates are positively and significantly related to personal income tax rates and negatively and significantly related to the unemployment benefit replacement rate. This accords a central role to government tax and transfer policies, in contrast to nonrobust influences from macroeconomic variables, which have been widely used in previous studies.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 71 (2004)
Issue (Month): 2 (October)
Pages: 287-301

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Handle: RePEc:sej:ancoec:v:71:2:y:2004:p:287-301

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Web page: http://www.southerneconomic.org/
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