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Gender Differences in Self-Employment over the Business Cycle

Author

Listed:
  • Pierpaolo Parrotta

    (Aarhus University [Aarhus], UNIL - Université de Lausanne = University of Lausanne)

  • Marianna Marino

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, ICN Business School, EPFL - Ecole Polytechnique Fédérale de Lausanne)

  • Nina Smith

    (Aarhus University [Aarhus])

Abstract

In this paper, we study how a self-employment subsidy directed towards the unemployed affected transitions to and from self-employment, how women and men responded to macroeconomic fluctuations in the presence (or absence) of such an income support policy tool, and whether the latter reduced or favored gender imbalances in the labor market. We are able to identify self-employment inflows and outflows by gender at the individual level over a long time span. We divide our analysis into two periods, i.e., before (1988-1996) and after the self-employment subsidy was shut down (1998-2006). Thus, exploiting such a source of exogenous variation, we find that this type of income support policy targeted to the self-employed may generate significant disincentive effects for the employability of more vulnerable individuals in the working age population and enlarge the already existing gap in labor market outcomes.

Suggested Citation

  • Pierpaolo Parrotta & Marianna Marino & Nina Smith, 2013. "Gender Differences in Self-Employment over the Business Cycle," Post-Print hal-01514521, HAL.
    • Handle: RePEc:hal:journl:hal-01514521
    as

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