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A Gender Perspective on Self-Employment Entry and Performance as Self-Employed

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  • Andersson Joona, Pernilla

    ()
    (SOFI, Stockholm University)

  • Wadensjö, Eskil

    ()
    (Stockholm University)

Abstract

Research on self-employment has increased during recent years and particular attention has been paid to self-employment dynamics and the factors influencing entry and exit rates from self-employment. Using a large panel data set for Sweden, this paper investigates variations in recruitment to self-employment and in self-employment performance by gender and by employment status prior to entering self-employment. As performance measures we use income from self-employment, number of employees, exit rates and destination after self-employment. We find that the probability of becoming self-employed is highest among men who are economically inactive and lowest among women who are wage-earners. Analysing self-employment performance, we find that men have higher incomes than women. Self-employed women more often than self-employed men have employees. For both men and women those who enter from unemployment or inactivity are less successful in terms of income and the probability of having employees than those who enter from paid employment. When exits are divided into paid employment and other employment status, we find that those who entered from unemployment or inactivity face a higher risk of returning to one of these states.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3581.

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Length: 33 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3581

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Keywords: self-employment; unemployment; income; occupational mobility; gender differences;

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References

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  1. Henrekson, Magnus & Du Rietz, Anita, 1999. "Testing the Female Underperformance Hypothesis," Working Paper Series, Research Institute of Industrial Economics 521, Research Institute of Industrial Economics.
  2. Yannis Georgellis & Howard Wall, 2005. "Gender differences in self-employment," International Review of Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 19(3), pages 321-342.
  3. Verheul, I. & Thurik, A.R. & Grilo, I., 2008. "Explaining Preferences and Actual Involvement in Self-Employment: New Insights into the Role of Gender," ERIM Report Series Research in Management, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasm ERS-2008-003-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  4. Pernilla Andersson & Eskil Wadensjö, 2007. "Do the unemployed become successful entrepreneurs?," International Journal of Manpower, Emerald Group Publishing, Emerald Group Publishing, vol. 28(7), pages 604-626, November.
  5. Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521030632.
  6. Martinez-Granado, Maite, 2002. "Self-Employment and Labour Market Transitions: A Multiple State Model," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3661, C.E.P.R. Discussion Papers.
  7. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, American Economic Association, vol. 79(3), pages 519-35, June.
  8. Kristy Eastough & Paul W. Miller, 2003. "The Gender Wage Gap in Paid and Self-Employment in Australia," Economics Discussion / Working Papers, The University of Western Australia, Department of Economics 03-24, The University of Western Australia, Department of Economics.
  9. Wellington, Alison J., 2006. "Self-employment: the new solution for balancing family and career?," Labour Economics, Elsevier, Elsevier, vol. 13(3), pages 357-386, June.
  10. Cowling, Marc & Taylor, Mark, 2001. " Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, Springer, vol. 16(3), pages 167-75, May.
  11. Greg Hundley, 2001. "Why Women Earn Less Than Men in Self-Employment," Journal of Labor Research, Transaction Publishers, Transaction Publishers, vol. 22(4), pages 817-829, October.
  12. Leung, Danny, 2006. "The male/female earnings gap and female self-employment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 35(5), pages 759-779, October.
  13. Andersson Joona, Pernilla & Wadensjö, Eskil, 2006. "Employees Who Become Self-Employed: Do Labour Income and Wages Have an Impact?," IZA Discussion Papers 1971, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Antonio Caparrós Ruiz, 2010. "Self-employment as first job choice in Spain: Evidence by nationality," Economic Working Papers at Centro de Estudios Andaluces, Centro de Estudios Andaluces E2010/03, Centro de Estudios Andaluces.
  2. Williams, Donald R., 2009. "Gender Discrimination and Self-Employment Dynamics in Europe," IRISS Working Paper Series, IRISS at CEPS/INSTEAD 2009-20, IRISS at CEPS/INSTEAD.
  3. Antonio Caparrós Ruiz, 2010. "Self-employment or paid employment as the first job: Evidence from Spain by nationality," International Journal of Social Economics, Emerald Group Publishing, Emerald Group Publishing, vol. 37(12), pages 951-969, October.

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