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

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  • Simon C. Parker
  • Martin T. Robson

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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  • Simon C. Parker & Martin T. Robson, 2004. "Explaining International Variations in Self‐Employment: Evidence from a Panel of OECD Countries," Southern Economic Journal, John Wiley & Sons, vol. 71(2), pages 287-301, October.
    • Handle: RePEc:wly:soecon:v:71:y:2004:i:2:p:287-301
    DOI: 10.1002/j.2325-8012.2004.tb00640.x
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    Cited by:

    1. Diris, Ron & Van Vliet, Olaf, 2022. "The Relation between Skills and Job Security: Identifying the Contractual Return to Skills," IZA Discussion Papers 15513, Institute of Labor Economics (IZA).
    2. Sjoerd Beugelsdijk, 2010. "Entrepreneurial Culture, Regional Innovativeness and Economic Growth," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 129-154, Springer.
    3. Magdalena Ulceluse & Martin Kahanec, 2023. "Eastward enlargements of the European Union, transitional arrangements and self-employment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 719-742, April.
    4. Kilström, Matilda & Roth, Paula, 2024. "Risk-sharing and entrepreneurship," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 341-360.
    5. Zs fia L. B r ny, 2017. "Taxation and self-employment," LIS Working papers 723, LIS Cross-National Data Center in Luxembourg.
    6. repec:hal:spmain:info:hdl:2441/2hpm2pgsb78r2a2lh6ahev49mj is not listed on IDEAS
    7. repec:hal:wpspec:info:hdl:2441/2hpm2pgsb78r2a2lh6ahev49mj is not listed on IDEAS
    8. Marco Savastano & Altaf Hussain Samo & Nisar Ahmed Channa & Carlo Amendola, 2022. "Toward a Conceptual Framework to Foster Green Entrepreneurship Growth in the Agriculture Industry," Sustainability, MDPI, vol. 14(7), pages 1-16, March.
    9. Irina Bilan & Constantin-Marius Apostoaie, 2023. "Unemployment benefits, entrepreneurship policies, and new business creation," Small Business Economics, Springer, vol. 61(4), pages 1411-1436, December.
    10. Ant Bozkaya & William R. Kerr, 2014. "Labor Regulations and European Venture Capital," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(4), pages 776-810, December.

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