The Role of Self-employment in Regional Labor Markets: An Empirical Perspective

This chapter empirically examines the role of self-employment in Europe. Countries like Sweden maintain constant levels of self-employment over time, reflecting a stable and well-regulated framework. In these contexts, self-employment is often supported by active policies and a strong welfare system that offers a robust safety net for workers. Other countries, like Spain, have seen more marked variations in the self-employment rate, often in response to economic crises and the lack of salaried employment opportunities. In Germany, small and medium-sized enterprises (SMEs) have provided significant (and innovative) contributions, demonstrating how entrepreneurship can stimulate economic growth and create jobs in emerging sectors. It is important to note that a high self-employment rate is not always synonymous with positive economic growth. In some cases, it can be associated with greater labor market precariousness and difficulties in accessing capital, making it less attractive for many workers. The case of post-communist economies in Eastern Europe is particularly interesting. Here, self-employment often represented an escape from poverty during transitions to market economies but, over time, it has transformed into an important driver of industrial growth. This change has been facilitated by support policies that have encouraged entrepreneurship and innovation.