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The role of dissatisfaction and per capita income in explaining self-employment across 15 European countries

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  • André van Stel
  • Roy Thurik
  • Sander Wennekers
  • Niels Noorderhaven

Abstract

This paper deals with explaining the sizable differences in the rate of self-employment (business ownership) across 15 European countries in the period 1978-2000, within a framework of occupational choice, focusing on the influence of dissatisfaction and of per capita income. Using two different measures of dissatisfaction, in addition to the level of economic development and controlling for several other variables, we find that, in addition to a negative and significant impact of per capita income, dissatisfaction at the level of societies has a positive and significant influence on self-employment levels. Both dissatisfaction with life and dissatisfaction with the way democracy works are found to influence self-employment. It is concluded that these are proxies for job dissatisfaction and at the same time represent other negative "displacements" known to promote self-employment. The findings indirectly point at the potential importance of push factors within the incentive structures of modern economies.

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Bibliographic Info

Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number N200407.

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Length: 23 pages
Date of creation: 19 May 2004
Date of revision:
Handle: RePEc:eim:papers:n200407

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  8. Isobel van der Kuip & Ingrid Verheul, 2003. "Early Development of Entrepreneurial Qualities: the Role of Initial Education," Scales Research Reports N200311, EIM Business and Policy Research.
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  10. Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
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