Transitions to and From Self-employment in Spain: An Empirical Analysis |
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Authors: | Raquel Carrasco |
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Institution: | CEMFI, Madrid |
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Abstract: | This paper investigates the influence of individual characteristics and the business cycle on the probability of entry into self-employment and on self-employment duration. We estimate multinomial logit and discrete competing risks models using data from a longitudinal sample of Spanish men for the period 1985–1991. The results indicate that unemployment raises the probability of entering self-employment, but also increases the hazard of leaving self-employment, especially into unemployment. Moreover, receiving unemployment benefits significantly reduces the probability of entering self-employment. Liquidity constraints are important in determining enterpreneurial selection, but only for those who become self-employed with employees. |
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