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The sustainability of start-up firms among formerly wage workers

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  • Fernando Munoz-Bullon

    ()

  • Begona Cueto Iglesias

    ()

Abstract

In this paper we analyse the survival of start-up firms among formerly wage workers in Spain. In particular, we address the question of how long do these workers remain self-employed before entering into unemployment or returning to a new paid-employment, using well-known duration model techniques. Results show that a higher survival rate in self-employment is associated to men, prime-age workers and individuals with higher previous labour turnover. Moreover, longer unemployment spells are found to speed up the rate of transition to non-employment and to reduce that to paid employment. Finally, the probability of exiting decreases with duration in self-employment.

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Bibliographic Info

Paper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb083108.

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Date of creation: Jun 2008
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Handle: RePEc:cte:wbrepe:wb083108

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Keywords: Self-employment; Duration analysis;

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References

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  13. C. Mirjam van Praag, 2003. "Business Survival and Success of Young Small Business Owners," Tinbergen Institute Discussion Papers 03-050/3, Tinbergen Institute.
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  16. C. Mirjam van Praag, 2003. "Business Survival and Success of Young Small Business Owners," Tinbergen Institute Discussion Papers 03-050/3, Tinbergen Institute.
  17. Taylor, Mark P, 1999. "Survival of the Fittest? An Analysis of Self-Employment Duration in Britain," Economic Journal, Royal Economic Society, vol. 109(454), pages C140-55, March.
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Cited by:
  1. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
  2. Tristan Boyer & Régis Blazy, 2014. "Born to be alive? The survival of innovative and non-innovative French micro-start-ups," Small Business Economics, Springer, vol. 42(4), pages 669-683, April.

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