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Self-employment or paid employment as the first job: Evidence from Spain by nationality

  • Antonio Caparrós Ruiz
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    Purpose – The aim of this paper is to offer new empirical evidence for Spain about the transition into self-employment or paid employment of potential entrants to the labor market and their duration in both segments of the market. Design/methodology/approach – The econometric methodology consists of estimating discrete-choice models and survival models, controlling for personal characteristics, job characteristics, and unobserved heterogeneity. Findings – One of the main results of this paper is that the immigrants are a disadvantaged group with regard to entry into self-employment as a first job. Moreover, once they enter self-employment, they are more likely than native Spaniards to exit from it. Practical implications – The results obtained in this paper are of interest to policy makers seeking to design economic policies that promote the assimilation of immigrants into the Spanish labor market. Originality/value – The topic discussed in this paper and the distinction made by the workers according to nationality is unknown in economic literature in Spain.

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    Article provided by Emerald Group Publishing in its journal International Journal of Social Economics.

    Volume (Year): 37 (2010)
    Issue (Month): 12 (October)
    Pages: 951-969

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    Handle: RePEc:eme:ijsepp:v:37:y:2010:i:12:p:951-969
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    1. Audretsch, David B & Carree, Martin A & Thurik, A R Roy & van Stel, André, 2005. "Does Self-Employment Reduce Unemployment?," CEPR Discussion Papers 5057, C.E.P.R. Discussion Papers.
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    3. Francine D. Blau & John W. Graham, 1989. "Black-White Differences in Wealth and Asset Composition," NBER Working Papers 2898, National Bureau of Economic Research, Inc.
    4. Carrasco, Raquel, 1999. " Transitions to and from Self-employment in Spain: An Empirical Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 315-41, August.
    5. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
    6. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
    7. David G. Blanchflower & Phillip B. Levine & David J. Zimmerman, 1998. "Discrimination in the Small Business Credit Market," NBER Working Papers 6840, National Bureau of Economic Research, Inc.
    8. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
    9. Andersson Joona, Pernilla & Wadensjö, Eskil, 2008. "A Gender Perspective on Self-Employment Entry and Performance as Self-Employed," IZA Discussion Papers 3581, Institute for the Study of Labor (IZA).
    10. Cressy, Robert, 1996. "Are Business Startups Debt-Rationed?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1253-70, September.
    11. Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-59, November.
    12. Y Georgellis & J G Sessions & N Tsitsianis, 2005. "Self-Employment Longitudinal Dynamics: A Review of the Literature," Economic Issues Journal Articles, Economic Issues, vol. 10(2), pages 51-84, September.
    13. Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
    14. Johnson, William R, 1978. "A Theory of Job Shopping," The Quarterly Journal of Economics, MIT Press, vol. 92(2), pages 261-78, May.
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