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Technological progress and the dynamics of self-employment: Worker-level evidence for Europe

Author

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  • Bachmann, Ronald
  • Gonschor, Myrielle
  • Milasi, Santo
  • Mitra, Alessio

Abstract

We examine how technology is associated with self-employment dynamics using worker-level data from 31 European countries. We find that while employees exposed to labour-augmenting technologies are more likely to move from paid-employment to solo self-employment and viceversa, employees exposed to labour-saving technologies are less likely to become self-employed. We identify important differences with respect to workers' socio-demographic characteristics. The results suggest that while labour-augmenting technologies promote workers' mobility and reduce unemployment risks for high-skilled workers, they have the opposite effect for low-skilled workers. Furthermore, labour-saving technologies worsen labour market outcomes particularlyfor low-skilled and routine workers.

Suggested Citation

  • Bachmann, Ronald & Gonschor, Myrielle & Milasi, Santo & Mitra, Alessio, 2023. "Technological progress and the dynamics of self-employment: Worker-level evidence for Europe," Ruhr Economic Papers 1023, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:282007
    DOI: 10.4419/86788924
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    More about this item

    Keywords

    Solo self-employment; occupations; tasks; technology; Europe;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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