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Who Starts a Business and who is Self-Employed in Germany

Author

Listed:
  • Michael Fritsch

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Alexander Kritikos

    (German Institute for Economic Research (DIW Berlin), University of Potsdam, IZA Bonn, and o IAB, Nuremberg)

  • Alina Rusakova

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

Based on representative data, the German Micro-Census, we provide an overview of the development of self-employment and entrepreneurship in Germany between 1991 and 2011, the first two decades after reunification. We investigate the socio-economic background of these individuals, their education, previous employment status, and their income level. We observe a unique increase in self-employment in Germany by 40 percent which can partly be attributed to the transformation process of East Germany and to the shift to the service sector. We notice a yearly start-up rate of 1 percent among the working population (almost 20 percent of them being re-starters), a decision that pays for the majority of individuals in terms of income. Contrary to other countries, in Germany there is a positive relationship between educational levels and the probability of starting a business.

Suggested Citation

  • Michael Fritsch & Alexander Kritikos & Alina Rusakova, 2012. "Who Starts a Business and who is Self-Employed in Germany," Jena Economics Research Papers 2012-001, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2012-001
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Entrepreneurship; Self-Employment; Start-ups; Germany;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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