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Self-employment and the local business cycle

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  • Svaleryd, Helena

    () (Department of Economics, Uppsala University)

Abstract

The business cycle is likely to be of importance for self-employment rates. When the economy is growing, business opportunities open up and encourage the set-up of new firms. In downturns, self-employment may be a way to avoid unemployment. The strength of these pull and push factors may depend on the amount of human capital a person has. The findings in this paper show that although the local business cycle is of minor importance for total self-employment rates in Sweden, there are heterogeneous effects across groups. People with higher human capital endowments are more likely to be pulled into self-employment, while those with lower human capital endowments are to a larger extent pushed into self-employment. This pattern is particularly strong for women.

Suggested Citation

  • Svaleryd, Helena, 2013. "Self-employment and the local business cycle," Working Paper Series 2013:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2013_016
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    References listed on IDEAS

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    1. repec:eee:labeco:v:47:y:2017:i:c:p:64-74 is not listed on IDEAS
    2. repec:bla:devpol:v:35:y:2017:i:2:p:197-228 is not listed on IDEAS
    3. Bradley Heim, 2015. "Understanding the decline in self-employment among individuals nearing retirement," Small Business Economics, Springer, vol. 45(3), pages 561-580, October.
    4. Silke Tegtmeier & Agnieszka Kurczewska & Jantje Halberstadt, 2016. "Are women graduates jacquelines-of-all-trades? Challenging Lazear’s view on entrepreneurship," Small Business Economics, Springer, vol. 47(1), pages 77-94, June.
    5. L. Behrenz & L. Delander & J. Månsson, 2016. "Is Starting a Business a Sustainable way out of Unemployment? Treatment Effects of the Swedish Start-up Subsidy," Journal of Labor Research, Springer, vol. 37(4), pages 389-411, December.
    6. David, Audretsch & Donald, Kuratko & Albert, Link, 2015. "Making Sense of the Elusive Paradigm of Entrepreneurship," UNCG Economics Working Papers 15-4, University of North Carolina at Greensboro, Department of Economics.

    More about this item

    Keywords

    Self-employment; local business cycle; panel data;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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