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The Decline of the Self-Employment Rate in Australia

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Author Info

  • Atalay, Kadir
  • Kim, Woo-Yung
  • Whelan, Stephen

Abstract

This paper using the Australian panel data(HILDA) investigates the declining trend of self-employment rate in Australia, a pattern observed in a number of other developed countries in the 2000s. We focus on the entry into and the exit from self-employment, treating males and females separately. Our results show that the self-employment rate has declined in Australia because older workers, especially older female workers, remained longer in paid-employment. This finding indicates that although the self-employment rate of older workers is higher than that of younger workers, the gap has decreased in recent years so that the average self-employment rate has declined. In addition, we provide some evidence that industry and institutional changes, such as reforms in tax and pension systems, may have contributed to an increase in the labour force participation of older females, which may explain why the decline of self-employment has been severe for this group.

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File URL: http://hdl.handle.net/2123/8925
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Bibliographic Info

Paper provided by University of Sydney, School of Economics in its series Working Papers with number 2013-03.

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Date of creation: Feb 2013
Date of revision:
Handle: RePEc:syd:wpaper:2123/8925

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Postal: Sydney, NSW 2006
Phone: 61 +2 9351 5055
Fax: 61 +2 9351 4341
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Web page: http://sydney.edu.au/arts/economics
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Related research

Keywords: Retirement; Older Workers; Self Employment;

This paper has been announced in the following NEP Reports:

References

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  1. Bruce, Donald, 2000. "Effects of the United States tax system on transitions into self-employment," Labour Economics, Elsevier, vol. 7(5), pages 545-574, September.
  2. Robert W. Fairlie & Alicia M. Robb, 2007. "Why Are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 289-323.
  3. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August.
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  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.
  8. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
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  15. Ekelund, Jesper & Johansson, Edvard & Jarvelin, Marjo-Riitta & Lichtermann, Dirk, 2005. "Self-employment and risk aversion--evidence from psychological test data," Labour Economics, Elsevier, vol. 12(5), pages 649-659, October.
  16. Marc Cowling, 2000. "Are entrepreneurs different across countries?," Applied Economics Letters, Taylor & Francis Journals, vol. 7(12), pages 785-789.
  17. Genda, Yuji & Kambayashi, Ryo, 2002. "Declining Self-Employment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 16(1), pages 73-91, March.
  18. Herb J. Schuetze, . "Taxes, Economic Conditions And Recent Trends in Male Self-Employment: A Canada-U.S. Comparison," Canadian International Labour Network Working Papers 11, McMaster University.
  19. Mark Stabile, 2004. "Payroll Taxes and the Decision to be Self-Employed," International Tax and Public Finance, Springer, vol. 11(1), pages 31-53, January.
  20. Tony Fang & Morley Gunderson, 2009. "Minimum Wage Impacts on Older Workers: Longitudinal Estimates from Canada," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 371-387, 06.
  21. Le, Anh T, 1999. " Empirical Studies of Self-Employment," Journal of Economic Surveys, Wiley Blackwell, vol. 13(4), pages 381-416, September.
  22. Kihlstrom, Richard E & Laffont, Jean-Jacques, 1979. "A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages 719-48, August.
  23. Chiswick, Barry R & Miller, Paul W, 1985. "Immigrant Generation and Income in Australia," The Economic Record, The Economic Society of Australia, vol. 61(173), pages 540-53, June.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Self-employment rate falling in Oz
    by Nicholas Gruen in Club Troppo on 2013-03-06 10:22:44

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