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The sustainability of start-up firms among formerly wage workers

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  • Muñoz-Bullón, Fernando
  • Cueto Iglesias, Begoña

Abstract

In this paper we analyse the survival of start-up firms among formerly wage workers in Spain. In particular, we address the question of how long do these workers remain self-employed before entering into unemployment or returning to a new paid-employment, using well-known duration model techniques. Results show that a higher survival rate in self-employment is associated to men, prime-age workers and individuals with higher previous labour turnover. Moreover, longer unemployment spells are found to speed up the rate of transition to non-employment and to reduce that to paid employment. Finally, the probability of exiting decreases with duration in self-employment.

Suggested Citation

  • Muñoz-Bullón, Fernando & Cueto Iglesias, Begoña, 2008. "The sustainability of start-up firms among formerly wage workers," DEE - Working Papers. Business Economics. WB wb083108, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
  • Handle: RePEc:cte:wbrepe:wb083108
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    References listed on IDEAS

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    Cited by:

    1. Raquel Fonseca Benito & Simon Lord, 2015. "Les déterminants du travail autonome au Québec et au Canada (1993-2010)," CIRANO Working Papers 2015s-45, CIRANO.
    2. Raquel Fonseca & Simon Lord, 2015. "Les déterminants du travail autonome au Québec et au Canada (1993-201," Cahiers de recherche 1517, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    3. Tristan Boyer & Régis Blazy, 2014. "Born to be alive? The survival of innovative and non-innovative French micro-start-ups," Small Business Economics, Springer, vol. 42(4), pages 669-683, April.
    4. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.

    More about this item

    Keywords

    Self-employment;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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