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New microeconometric evidence from the German Socio-Economic Panel

Author

Listed:
  • Joachim Merz
  • Peter Paic

    (LEUPHANA University Lüneburg,Department of Economic, Behaviour and Law Sciences, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)))

Abstract

If certain start-up characteristics will indicate a business success, knowing such characteristics could generate more successful start-ups and more efficient start-up counseling. Our study will contribut e to this by quantifying individual success determinants of freelance start-ups. The data base for the microeconometric analyses of the survival of the first three years is a revised German Socio-Economic Panel (SOEP) for 1992 until 2002, which allows to incorporate institutional, personal and family/household socio-economic variables. We describe and discuss the datawork to achieve compatible information over time within a revised GSOEP and present microeconometric rare events logit, logit and probit results. The start-up success measured as the probability to survive the first three years is first of all influenced by an active labour force participation with its acquired skills and working experiences just before the start-up period (rank 1), followed by a non-university degree as the highest general human capital indicator (rank 2), a general (non-linear) experience indicated by age (rank 3) and the business related background (rank 4) as the type of liberal profession in the group of the liberal medical professions and the liberal technical and scientific professions.

Suggested Citation

  • Joachim Merz & Peter Paic, 2006. "New microeconometric evidence from the German Socio-Economic Panel," FFB-Discussionpaper 56, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  • Handle: RePEc:leu:wpaper:56
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    References listed on IDEAS

    as
    1. Richard V. Burkhauser & Timothy M. Smeeding & Joachim Merz, 1996. "Relative Inequality And Poverty In Germany And The United States Using Alternative Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 381-400, December.
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    5. Mincer, Jacob, 1970. "The Distribution of Labor Incomes: A Survey with Special Reference to the Human Capital Approach," Journal of Economic Literature, American Economic Association, vol. 8(1), pages 1-26, March.
    6. de Kam, C. A. & de Haan, J. & Giles, C. & Manresa, A. & Berenguer, E. & Calonge, S. & Merz, J. & Venkatarama, K., 1996. "The distribution of effective tax burdens in four EU countries," MPRA Paper 7144, University Library of Munich, Germany.
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    1. Tengeh, RK & Ballard, HB & Slabbert, AS, 2012. "Do immigrant-owned businesses grow financially? An empirical study of African immigrant-owned businesses in the South Africa," MPRA Paper 40610, University Library of Munich, Germany.

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    More about this item

    Keywords

    start-up success; freelancers (liberal professions); German Socio-Economic Panel; rare events logit; logit; probit;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • D10 - Microeconomics - - Household Behavior - - - General

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