Leaving Unemployment for Self-employment : A Discrete Duration Analysis of Determinants and Stability of Self-employment among Former Unemployed

Reize, Frank

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URL:	http://ub-madoc.bib.uni-mannheim.de/558
URN:	urn:nbn:de:bsz:180-madoc-5583
Document Type:	Working paper
Year of publication:	2000
The title of a journal, publication series:	None
Publication language:	English
Institution:	Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Subject headings (SWD):	Deutschland , Arbeitslosigkeit , Selbständige Arbeit , Fähigkeit
Abstract:	The paper investigates the determinants and the success of self-employment among former unemployed. Self-employment has become an important re-employment opportunity during the last decade due to increasing subsidies. The econometric analysis is carried out using discrete hazard rate models on 14 waves of the German Socio-Economic Panel, covering the period from 1983 to 1996. I do not find any effects of unemployment duration on the transition from unemployment to selfemployment. Moreover, unemployed people entering self-employment have higher skills than the average of the unemployed population and self-employment seems to be more stable than paid-employment would have been because people face a lower risk of becoming unemployed again.
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