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The policy drivers of self-employment: New evidence from Europe

Author

Listed:
  • Balázs Egert
  • Annabelle Mourougane
  • Mark Baker
  • Gábor Fülöp

Abstract

Using cross-country time series panel regressions for the last two decades, this paper seeks to identify the main policy and institutional factors that explain the share of self-employment across European countries. It looks at the aggregate share of self-employed as well as its breakdown by age, skill and gender. The generosity of unemployment benefits, and to a lesser extent, spending on active labour market policies appear to be robust determinants of the long-term share of self-employed in European countries. No significant relation could be identified between the stringency of employment protection and aggregate self-employment. However, there are significant, and oppositely signed, impacts on high- and low-skilled self-employed separately. Both the tax wedge and the minimum wage appear to be related positively to the share of self-employed in the long term, but the relation holds for some categories of workers only.

Suggested Citation

  • Balázs Egert & Annabelle Mourougane & Mark Baker & Gábor Fülöp, 2021. "The policy drivers of self-employment: New evidence from Europe," EconomiX Working Papers 2021-3, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2021-3
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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