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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