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

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Author Info
Andersson Joona, Pernilla () (SOFI, Stockholm University)
Wadensjö, Eskil () (Stockholm University)

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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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Publisher 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
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Handle: RePEc:iza:izadps:dp3581

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

Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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References listed on IDEAS
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  1. Yannis Georgellis & Howard J. Wall, 2004. "Gender differences in self-employment," Working Papers 1999-008, Federal Reserve Bank of St. Louis. [Downloadable!]
    Other versions:
  2. Greg Hundley, 2001. "Why Women Earn Less Than Men in Self-Employment," Journal of Labor Research, Transaction Publishers, vol. 22(4), pages 817-829, October. [Downloadable!] (restricted)
  3. Martinez-Granado, Maite, 2002. "Self-Employment and Labour Market Transitions: A Multiple State Model," CEPR Discussion Papers 3661, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Verheul, I. & Thurik, A.R. & Grilo, I., 2008. "Explaining Preferences and Actual Involvement in Self-Employment: New Insights into the Role of Gender," Research Paper ERS-2008-003-ORG Revision, 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 Uni. [Downloadable!]
    Other versions:
  5. Du Rietz, Anita & Henrekson, Magnus, 2000. " Testing the Female Underperformance Hypothesis," Small Business Economics, Springer, vol. 14(1), pages 1-10, February. [Downloadable!] (restricted)
    Other versions:
  6. Cowling, Marc & Taylor, Mark, 2001. " Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, vol. 16(3), pages 167-75, May. [Downloadable!] (restricted)
  7. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June. [Downloadable!] (restricted)
  8. Greg Hundley, 2000. "Male/female earnings differences in self-employment: The effects of marriage, children, and the household division of labor," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 54(1), pages 95-114, October.
  9. Wellington, Alison J., 2006. "Self-employment: the new solution for balancing family and career?," Labour Economics, Elsevier, vol. 13(3), pages 357-386, June. [Downloadable!] (restricted)
  10. Kristy Eastough & Paul W. Miller, 2004. "The Gender Wage Gap in Paid- and Self-Employment in Australia," Australian Economic Papers, Blackwell Publishing, vol. 43(3), pages 257-276, 09. [Downloadable!] (restricted)
    Other versions:
  11. Leung, Danny, 2006. "The male/female earnings gap and female self-employment," The Journal of Socio-Economics, Elsevier, vol. 35(5), pages 759-779, October. [Downloadable!] (restricted)
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