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Drivers of Self-Employment - A Multivariate Decomposition Analysis for the Case of Germany

Author

Listed:
  • Michael Fritsch

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

  • Alexander Kritikos

    () (German Institute for Economic Research (DIW Berlin), and University of Potsdam)

  • Alina Sorgner

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

Abstract

We analyze the sources of the rise in the levels of self-employment in Germany since reunification by applying the non-linear Blinder-Oaxaca decomposition technique. This analysis is performed separately for East and West Germany in order to account for the East German recovery of entrepreneurship after 40 years of socialist regime. We find different results for self-employed people with employees and solo- entrepreneurs. The main factors determining changes in the level of self-employment are demographic developments, the shift toward service sector employment, and a higher share of population holding a tertiary degree. The analysis also suggests that changes in personal attitudes toward self-employment might be responsible for the particular increase of solo-entrepreneurship.

Suggested Citation

  • Michael Fritsch & Alexander Kritikos & Alina Sorgner, 2013. "Drivers of Self-Employment - A Multivariate Decomposition Analysis for the Case of Germany," Jena Economic Research Papers 2013-006, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2013-006
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mrożewski Matthias, 2014. "An Empirical Analysis of Economic and Socio-Demographic Determinants of Entrepreneurship Across German Regions," International Journal of Management and Economics, De Gruyter Open, vol. 42(1), pages 60-80, June.
    2. Michael Fritsch & Alina Sorgner & Michael Wyrwich & Evguenii Zazdravnykh, 2014. "Regional Transitions from Socialism to Entrepreneurship: Russia and Germany compared," ERSA conference papers ersa14p281, European Regional Science Association.

    More about this item

    Keywords

    Self-employment; non-linear Blinder-Oaxaca decomposition technique; entrepreneurship; Germany;

    JEL classification:

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

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