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Self-Employment in OECD Countries

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Author Info
David G. Blanchflower

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Abstract

This paper describes measurement of a self-employment rate and the important role the agricultural sector plays in any analysis of the determinants of self-employment. The determinants of the self-employment rate are modeled using a panel of 23 countries for the period 1966-1996. A similar analysis is then performed at the level of the individual using a time-series of cross-sections for the period 1975-1996 for 19 countries. For most countries there is a negative relationship between the self-employment rate and the unemployment rate. It is also shown that the self-employed are more satisfied with their jobs than are individuals who are not their own boss. I developed a flexibility index based on information provided by individuals in 1995. According to this index, the U.S. economy was the most flexible, followed by Canada, Germany and the Netherlands. Latvia, Russia and Hungary were found to be the least flexible countries. Of the OECD countries examined, Austria and Ireland were ranked lowest.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7486.

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Date of creation: Jan 2000
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Handle: RePEc:nbr:nberwo:7486

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J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Marc Bendick & Jr & Mary L. Egan, 1987. "Transfer payment diversion for small business development: British and French experience," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 40(4), pages 528-542, July.
  2. Black, Jane & de Meza, David & Jeffreys, David, 1996. "House Price, the Supply of Collateral and the Enterprise Economy," Economic Journal, Royal Economic Society, vol. 106(434), pages 60-75, January. [Downloadable!] (restricted)
  3. Blanchflower, David G & Meyer, Bruce D, 1994. " A Longitudinal Analysis of the Young Self-Employed in Australia and the United States," Small Business Economics, Springer, vol. 6(1), pages 1-19, February.
  4. David G. Blanchflower & Richard Freeman, 1997. "The attitudinal legacy of Communist labor relations," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 50(3), pages 438-459, April.
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