Self-Employment out of Dissatisfaction: An International Study
AbstractThis paper studies differences in the rate of self-employment (business ownership) in more thantwenty Western nations and Japan for the period 1974-1994, focusing in particular on theinfluences of dissatisfaction and uncertainty avoidance. We test two types of hypotheses, pertainingto the positive influence of various forms of dissatisfaction on the level of self-employment, and todifferences between the importance of various push and pull factors in low and high uncertaintyavoidance countries. The two types of hypotheses are related, as inhabitants of high-uncertaintyavoidance cultures tend to express lower levels of satisfaction with life. Using a longitudinaldataset covering 12 European countries, and controlling for important economic factors, we findthat dissatisfaction is a very important variable for explaining differences in self-employmentlevels. Dissatisfaction seems to be a factor promoting self-employment, not only at the level of theindividual, but also at the level of societies. Hofstede's Uncertainty Avoidance Index is used todistinguish between low and high-uncertainty avoidance countries, and the factors influencingselfemployment rates within these two clusters are investigated in a set of 23 countries. In the group ofhigh-uncertainty avoidance countries a strong negative relationship between GDP per capita andthe level of self-employment is found, in low-uncertainty avoidance countries the profits associatedwith being self-employed are a significant factor. These findings, which support the hypotheses,suggest that in high-uncertainty avoidance countries self-employment is often caused by a lack ofprosperity (a push factor); in low-uncertainty avoiding countries the pull factor of expected profitsis more important.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 99-089/3.
Date of creation: 18 Nov 1999
Date of revision:
Contact details of provider:
Web page: http://www.tinbergen.nl
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-02-10 (All new papers)
- NEP-ENT-2002-02-10 (Entrepreneurship)
- NEP-LAB-2002-02-10 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roy Thurik & Wim Verhoeven & Sander Wennekers, 1999.
"Self-employment in 23 OECD countries,"
Scales Research Reports
H199811, EIM Business and Policy Research.
- Audretsch, D.B. & Thurik, A.R., 1998. "The Knowledge Society, Entrepreneurship and Unemployment," Papers 9801/e, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
- Schultz, T.P., 1989.
"Women'S Changing Participation In The Labor Force: A World Perspective,"
571, Yale - Economic Growth Center.
- Schultz, T Paul, 1990. "Women's Changing Participation in the Labor Force: A World Perspective," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 457-88, April.
- Schultz, T. Paul, 1989. "Women's changing participation in the labor force : a world perspective," Policy Research Working Paper Series 272, The World Bank.
- Daron Acemoglu, 1993.
"Reward Structures and the Allocation of Talent,"
CEP Discussion Papers
dp0143, Centre for Economic Performance, LSE.
- Kihlstrom, Richard E & Laffont, Jean-Jacques, 1979. "A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages 719-48, August.
- André van Stel & Roy Thurik & Sander Wennekers & Martin Carree, 1999.
"Business ownership and economic growth: an emperial investigation,"
Scales Research Reports
H199809, EIM Business and Policy Research.
- Carree, M. & van Stel, A. & Thurik, R. & Wennekers, S., 1998. "Business Ownership and Economic Growth: an Empirical Investigation," Papers 9809/e, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
- Blanchflower, David G & Oswald, Andrew J, 1998.
"What Makes an Entrepreneur?,"
Journal of Labor Economics,
University of Chicago Press, vol. 16(1), pages 26-60, January.
- Shane, Scott, 1993. "Cultural influences on national rates of innovation," Journal of Business Venturing, Elsevier, vol. 8(1), pages 59-73, January.
- Blanchflower, David G & Meyer, Bruce D, 1994. " A Longitudinal Analysis of the Young Self-Employed in Australia and the United States," Small Business Economics, Springer, vol. 6(1), pages 1-19, February.
- Birley, Sue & Westhead, Paul, 1994. "A taxonomy of business start-up reasons and their impact on firm growth and size," Journal of Business Venturing, Elsevier, vol. 9(1), pages 7-31, January.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).
If references are entirely missing, you can add them using this form.