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The impact of childcare enrollment on women’s selection into self-employment

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  • Florian Noseleit

    (Faculty of Economics and Business, Rijksuniversiteit Groningen)

Abstract

Women carry on to provide substantially more work in the household compared to men despite increasing female labor force participation. This inequality in household production can be considered an informal institution that may affect occupational choices of women. This paper argues that such informal institutional arrangements cause adverse selection into selfemployment among women since the promise of flexibly combining household production and labor force participation offered by self-employment is more appealing to women than men. However, formal institutions like childcare arrangements outside the household may reduce such adverse selection. We hypothesize that childcare availability influences the selection of females into self-employment conditional on the frequency of young children in households. Our empirical evidence suggests that better childcare availability causes fewer women to enter self-employment but those that enter tend to have higher levels of formal education and hire more often employees.

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File URL: http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2014-15.pdf
File Function: First version, 2014
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Bibliographic Info

Paper provided by Maastricht School of Management in its series Working Papers with number 2014/15.

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Length: 24 pages
Date of creation: May 2014
Date of revision:
Handle: RePEc:msm:wpaper:2014/15

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  1. Ingrid Verheul & Andre van Stel & Roy Thurik, 2005. "Explaining female and male entrepreneurship at the country level," Papers on Entrepreneurship, Growth and Public Policy 2005-34, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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  3. Claudia Goldin, 2006. "The Quiet Revolution That Transformed Women's Employment, Education, and Family," American Economic Review, American Economic Association, vol. 96(2), pages 1-21, May.
  4. Rachel Connelly, 1992. "Self-employment and providing child care," Demography, Springer, vol. 29(1), pages 17-29, February.
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  7. Wellington, Alison J., 2006. "Self-employment: the new solution for balancing family and career?," Labour Economics, Elsevier, vol. 13(3), pages 357-386, June.
  8. Michael Fritsch & Florian Noseleit, 2013. "Start-ups, long- and short-term survivors, and their contribution to employment growth," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 719-733, September.
  9. Johan Wiklund & Dean Shepherd, 2003. "Aspiring for, and Achieving Growth: The Moderating Role of Resources and Opportunities," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 1919-1941, December.
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  11. Cowling, Marc & Taylor, Mark, 2001. " Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, vol. 16(3), pages 167-75, May.
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  13. Davidsson, Per, 1991. "Continued entrepreneurship: Ability, need, and opportunity as determinants of small firm growth," Journal of Business Venturing, Elsevier, vol. 6(6), pages 405-429, November.
  14. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
  15. Amanda Elam & Siri Terjesen, 2010. "Gendered Institutions and Cross-National Patterns of Business Creation for Men and Women," The European Journal of Development Research, Palgrave Macmillan, vol. 22(3), pages 331-348, July.
  16. Goldin, Claudia, 2006. "The Quiet Revolution That Transformed Women’s Employment, Education, and Family," Scholarly Articles 2943933, Harvard University Department of Economics.
  17. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
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