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A Gender Perspective on Self-Employment Entry and Performance as Self-Employed

  • Andersson Joona, Pernilla

    ()

    (SOFI, Stockholm University)

  • Wadensjö, Eskil

    ()

    (Stockholm University)

Research on self-employment has increased during recent years and particular attention has been paid to self-employment dynamics and the factors influencing entry and exit rates from self-employment. Using a large panel data set for Sweden, this paper investigates variations in recruitment to self-employment and in self-employment performance by gender and by employment status prior to entering self-employment. As performance measures we use income from self-employment, number of employees, exit rates and destination after self-employment. We find that the probability of becoming self-employed is highest among men who are economically inactive and lowest among women who are wage-earners. Analysing self-employment performance, we find that men have higher incomes than women. Self-employed women more often than self-employed men have employees. For both men and women those who enter from unemployment or inactivity are less successful in terms of income and the probability of having employees than those who enter from paid employment. When exits are divided into paid employment and other employment status, we find that those who entered from unemployment or inactivity face a higher risk of returning to one of these states.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3581.

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Length: 33 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3581
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  1. Du Rietz, Anita & Henrekson, Magnus, 2000. " Testing the Female Underperformance Hypothesis," Small Business Economics, Springer, vol. 14(1), pages 1-10, February.
  2. Verheul, I. & Thurik, A.R. & Grilo, I., 2008. "Explaining Preferences and Actual Involvement in Self-Employment: New Insights into the Role of Gender," ERIM Report Series Research in Management ERS-2008-003-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  3. repec:cup:cbooks:9780521828130 is not listed on IDEAS
  4. Pernilla Andersson & Eskil Wadensjö, 2007. "Do the unemployed become successful entrepreneurs?," International Journal of Manpower, Emerald Group Publishing, vol. 28(1), pages 604 - 626, October.
  5. Cowling, Marc & Taylor, Mark, 2001. " Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, vol. 16(3), pages 167-75, May.
  6. Greg Hundley, 2001. "Why Women Earn Less Than Men in Self-Employment," Journal of Labor Research, Transaction Publishers, vol. 22(4), pages 817-829, October.
  7. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
  8. Kristy Eastough & Paul W. Miller, 2003. "The Gender Wage Gap in Paid and Self-Employment in Australia," Economics Discussion / Working Papers 03-24, The University of Western Australia, Department of Economics.
  9. Yannis Georgellis & Howard J. Wall, 2004. "Gender differences in self-employment," Working Papers 1999-008, Federal Reserve Bank of St. Louis.
  10. Leung, Danny, 2006. "The male/female earnings gap and female self-employment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(5), pages 759-779, October.
  11. Martinez-Granado, Maite, 2002. "Self-Employment and Labour Market Transitions: A Multiple State Model," CEPR Discussion Papers 3661, C.E.P.R. Discussion Papers.
  12. Wellington, Alison J., 2006. "Self-employment: the new solution for balancing family and career?," Labour Economics, Elsevier, vol. 13(3), pages 357-386, June.
  13. Andersson Joona, Pernilla & Wadensjö, Eskil, 2006. "Employees Who Become Self-Employed: Do Labour Income and Wages Have an Impact?," IZA Discussion Papers 1971, Institute for the Study of Labor (IZA).
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