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Planning for self-employment at the beginning of a market economy: evidence from individual data of East German workers

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  • Lechner, Michael
  • Pfeiffer, Friedhelm

Abstract

We investigate the plans of individual workers concerning future self-employment in the former German Democratic Republic (East Germany) shortly before the economic, monetary and social union in June/July 1990. Our data base is the Socio-Economic Panel (SOEP) East. We find that the desire to become an entrepreneur is basically determined by individual and household characteristics, including income and asset indicators, and not as much by the current job situation of the individual. Furthermore, we find evidence of barriers to entry which may come from capital market constraints and institutional restrictions. Due to the ordinal nature of the answers, we used the ordinal logit model for estimation. The corresponding stochastic assumptions are tested extensively using pseudo-Lagrange multiplier tests against omitted variables, non-linearity, asymmetry of distribution, and heteroscedasticity. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 92-01.

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Date of creation: 1992
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Handle: RePEc:zbw:zewdip:9201

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Cited by:
  1. Wagner, Joachim, 2004. "What a Difference a Y Makes: Female and Male Nascent Entrepreneurs in Germany," IZA Discussion Papers 1134, Institute for the Study of Labor (IZA).
  2. repec:iab:iabzaf:v:38:i:2/3:p:325-340 is not listed on IDEAS
  3. Joseph LiPuma & Scott Newbert & Jonathan Doh, 2013. "The effect of institutional quality on firm export performance in emerging economies: a contingency model of firm age and size," Small Business Economics, Springer, vol. 40(4), pages 817-841, May.
  4. Yannis Georgellis & Howard J. Wall, 2004. "Gender differences in self-employment," Working Papers 1999-008, Federal Reserve Bank of St. Louis.
  5. repec:iab:iabmit:v:33:i:3:p:518-532 is not listed on IDEAS
  6. Pfeiffer, Friedhelm, 1999. "Existenzgründerpotenziale unter Arbeitsuchenden: Empirische Evidenz auf der Basis des Mikrozensus (Potential for self-employment among jobseekers : empirical evidence on the basis of the microcensus)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 32(3), pages 300-330.
  7. repec:iab:iabmit:v:32:i:3:p:300-330 is not listed on IDEAS
  8. Pfeiffer, Friedhelm, 2005. "Existenzgründungen: Ein Weg zur Beschäftigungsförderung? (Firm foundation * a way to enhance employment?)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 325-340.
  9. Wyrwich, Michael, 2013. "Can socioeconomic heritage produce a lost generation with regard to entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 667-682.
  10. Pfeiffer, Friedhelm, 1999. "Existenzgründerpotentiale unter Arbeitsuchenden: Empirische Evidenz auf der Basis des Mikrozensus," ZEW Discussion Papers 99-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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