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To what extent do policies contribute to self-employment?

Author

Listed:
  • Mark Baker

    (OECD)

  • Balázs Égert

    (OECD)

  • Gabor Fulop

    (OECD)

  • Annabelle Mourougane

    (OECD)

Abstract

Using cross-country time series panel regressions for the last two decades, this paper seeks to identify the main policy and institutional factors that explain the share of self-employment across European countries. It looks at the aggregate share of self-employed as well as its breakdown by age, skill and gender. The generosity of unemployment benefits, and to a lesser extent, spending on active labour market policies appear to be robust determinants of the long-term share of self-employed in European countries. No significant relation is found between the stringency of employment protection and aggregate self-employment. However, there are significant, and oppositely signed, impacts on high- and low-skilled self-employed separately. Both the tax wedge and the minimum wage appear to be positively related to the share of self-employed in the long term, but the relation holds for some categories of workers only.

Suggested Citation

  • Mark Baker & Balázs Égert & Gabor Fulop & Annabelle Mourougane, 2018. "To what extent do policies contribute to self-employment?," OECD Economics Department Working Papers 1512, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1512-en
    DOI: 10.1787/74c044b1-en
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    More about this item

    Keywords

    labour market; OECD; self-employment;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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