Self-employment and the local business cycle
AbstractThe business cycle is likely to be of importance for self-employment rates. When the economy is growing, business opportunities open up and encourage the set-up of new firms. In downturns, self-employment may be a way to avoid unemployment. The strength of these pull and push factors may depend on the amount of human capital a person has. The findings in this paper show that although the local business cycle is of minor importance for total self-employment rates in Sweden, there are heterogeneous effects across groups. People with higher human capital endowments are more likely to be pulled into self-employment, while those with lower human capital endowments are to a larger extent pushed into self-employment. This pattern is particularly strong for women.
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Bibliographic InfoPaper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2013:16.
Length: 29 pages
Date of creation: 08 Aug 2013
Date of revision:
Self-employment; local business cycle; panel data;
Other versions of this item:
- Svaleryd, Helena, 2013. "Self-employment and the local business cycle," Working Paper Series, Center for Labor Studies 2013:9, Uppsala University, Department of Economics.
- Svaleryd, Helena, 2013. "Self-employment and the local business cycle," Working Paper Series 2013:15, Uppsala University, Department of Economics.
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-31 (All new papers)
- NEP-ENT-2013-08-31 (Entrepreneurship)
- NEP-LAB-2013-08-31 (Labour Economics)
- NEP-LMA-2013-08-31 (Labor Markets - Supply, Demand, & Wages)
- NEP-URE-2013-08-31 (Urban & Real Estate Economics)
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