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Self-employment in Denmark and Spain: Institution, Economic Conditions and Gender differences

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Author Info

  • Raquel Carrasco

    (Universidad Carlos III de Madrid)

  • Mette Ejrnæs

    (Institute of Economics, University of Copenhagen)

Abstract

Among the OECD countries, Spain faces one of the highest rates of self-employment and Denmark one of the lowest, being the difference specially relevant among women. These two countries present important differences in their institutional environment and labour market conditions: the level of labour market flexibility and the importance of parttime employment, the generosity of the unemployment benefit systems, and the role of the child care policies, among others. In this paper we compare the Danish and Spanish labour markets and analyze to what extent the different evolution of female and male self-employment rates are influenced by country-specific employment conditions. This study is carried out for men and women separately using a strictly comparable panel data set for the two countries. The results indicate that in Spain self-employment seems to offer individuals who normally are considered as marginalized in the labour market a beneficial alternative to wage employment, while this pattern is not so clear in Denmark. Our analysis suggests that an important factor in explaining the difference in Danish and Spanish self-employment rates is the different employment environment that both countries face.

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File URL: http://www.econ.ku.dk/cam/wp0910/wp0203/2003-06.pdf/
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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics in its series CAM Working Papers with number 2003-06.

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Length: 14 pages
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:kud:kuieca:2003_06

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Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark
Phone: (45) 35 32 30 74
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Web page: http://www.econ.ku.dk/CAM/
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Related research

Keywords: self-employment; transitions; gender differences;

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Cited by:
  1. Mika Haapanen & Hannu Tervo, 2009. "Self-employment duration in urban and rural locations," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2449-2461.
  2. Mette Ejrnæs & Stefan Hochguertel, 2008. "Entrepreneurial Moral Hazard in Income Insurance: Empirical Evidence from a Large Administrative Sample," CAM Working Papers 2008-02, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  3. Anu Tokila & Hannu Tervo, 2011. "Regional differences in returns to education for entrepreneurs versus wage earners," The Annals of Regional Science, Springer, vol. 47(3), pages 689-710, December.
  4. Gema Álvarez & Carlos Gradín & M. Soledad Otero, 2009. "Self-employment in Spain: Transition and earnings differential," Working Papers 0907, Universidade de Vigo, Departamento de Economía Aplicada.
  5. Hannu Tervo, 2004. "Self-employment dynamics in rural and urban labour markets," ERSA conference papers ersa04p396, European Regional Science Association.

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