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Is Self-employment a Way to Escape from Skill Mismatches?

Author

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  • Albiol Sanchez, Judit

    () (Universitat Rovira i Virgili)

  • Diaz-Serrano, Luis

    () (Universitat Rovira i Virgili)

  • Teruel, Graciela

    () (National Council for the Evaluation of Social Development Policy (CONEVAL))

Abstract

During the last two decades, skill mismatches have become one of the most important issues of policy concern in the EU (European Commission, 2008). Hence, the literature has stressed the necessity to reduce skill mismatches. We contribute to this literature by analyzing the impact of the transition from salaried employment to self-employment on self-reported skill mismatches. To do so, we resort to the European Community Household Panel (ECHP) covering the period 1994-2001. Using panel data, we track individuals over time and measure their self-reported skill mismatch before and after the transition. Our empirical findings indicate not only that the average self-employee is less likely to declare being skill-mismatched but also that those individuals who transit from salaried employment to self-employment reduce their probability of skill mismatches after the transition.

Suggested Citation

  • Albiol Sanchez, Judit & Diaz-Serrano, Luis & Teruel, Graciela, 2015. "Is Self-employment a Way to Escape from Skill Mismatches?," IZA Discussion Papers 9008, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9008
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    Cited by:

    1. Ulceluse, Magdalena, 2018. "Self-employment as a stepping stone to better labour market matching: a comparison between immigrants and natives," GLO Discussion Paper Series 219, Global Labor Organization (GLO).

    More about this item

    Keywords

    self-employment; skill mismatches; salaried employment;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies

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