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Self employment among Italian female graduates

Listed author(s):
  • Francesco Chelli

    (Department of Economics, University Politecnica delle Marche (Ancona))

  • Luisa Rosti


    (Department of Economics and Quantitative Methods, University of Pavia)

Registered author(s):

    Purpose: To investigate the gender impact of tertiary education on the probability of entering and remaining in self employment. Design/methodology/approach: We exploit a data set on labour market flows produced by the Italian National Statistical Office by interviewing about 62,000 graduate and non graduate individuals in transition between five labour market states: Dependent workers; Self-Employed workers; Unemployed persons; Non active persons. From these data we constructed an average ten-year transition matrix (1993-2003) and investigated the flows between labour market conditions by applying Markovian analysis. Findings: Our data show that education significantly increases the probability of entering self employment for both male and female graduates, but it also significantly increases the transition from self employment to dependent employment for female graduates, thereby increasing the percentage of female graduates in paid employment and reducing the percentage of women in entrepreneurial activities. We argue that the disappointment provoked by the gender wage gap in paid employment may induce some female graduates with low entrepreneurial ability to set up on their own, but once in self employment they have lower survival rates than both men in self employment and women in paid employment. Thus, what we observe overall, is that education widens the gender gap between self employed workers and employees for individuals persisting in the same working condition. Originality/value: Our data enable us to shift the focus of the relationship between education and entrepreneurship from the probability of being self employed to the probability of entering and surviving in this condition.

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    Paper provided by University of Pavia, Department of Economics and Quantitative Methods in its series Quaderni di Dipartimento with number 090.

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    Length: 28 pages
    Date of creation: Jan 2009
    Handle: RePEc:pav:wpaper:090
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    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    1. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004.
    2. Alberto F. Alesina & Francesca Lotti & Paolo Emilio Mistrulli, 2013. "Do Women Pay More For Credit? Evidence From Italy," Journal of the European Economic Association, European Economic Association, vol. 11, pages 45-66, 01.
    3. Muravyev, Alexander & Talavera, Oleksandr & Schäfer, Dorothea, 2009. "Entrepreneurs' gender and financial constraints: Evidence from international data," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 270-286, June.
    4. Andrew Burke & Felix FitzRoy & Michael Nolan, 2008. "What makes a die-hard entrepreneur? Beyond the ‘employee or entrepreneur’ dichotomy," Small Business Economics, Springer, vol. 31(2), pages 93-115, August.
    5. repec:hhs:iuiwop:521 is not listed on IDEAS
    6. Clain, Suzanne Heller, 2000. "Gender differences in full-time self-employment," Journal of Economics and Business, Elsevier, vol. 52(6), pages 499-513.
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