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Time allocation by the self-employed: the determinants of the number of working hours in start-ups

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  • Martin Carree
  • Ingrid Verheul

Abstract

This article examines determinants of working hours by self-employed, explicitly discriminating between preference and productivity effects. A simple model of working hours is derived, not requiring expected profit data. The model is estimated using data from a Dutch survey of 1350 start-ups. Outsourcing and number of employees appear related to both preference and productivity. The model has out-of-sample predictive power for the number of working hours.

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  • Martin Carree & Ingrid Verheul, 2009. "Time allocation by the self-employed: the determinants of the number of working hours in start-ups," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1511-1515.
  • Handle: RePEc:taf:apeclt:v:16:y:2009:i:15:p:1511-1515 DOI: 10.1080/13504850701580542
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    1. Leigh Andrew, 2007. "Intergenerational Mobility in Australia," The B.E. Journal of Economic Analysis & Policy, De Gruyter, pages 1-28.
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    Cited by:

    1. Ingrid Verheul & Martin Carree & Roy Thurik, 2009. "Allocation and productivity of time in new ventures of female and male entrepreneurs," Small Business Economics, Springer, pages 273-291.
    2. Ingrid Verheul & Martin Carree & Roy Thurik, 2008. "Allocation and Productivity of Time in new Ventures of Female and Male Entrepreneurships," Papers on Entrepreneurship, Growth and Public Policy 2006-01, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    3. Lechmann, Daniel S. J., 2017. "Estimating labor supply in self-employment: Pitfalls and resolutions," Discussion Papers 101, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.

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