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

Listed author(s):
  • 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))

Registered author(s):

    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.

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    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 9008.

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    Length: 37 pages
    Date of creation: Apr 2015
    Handle: RePEc:iza:izadps:dp9008
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