Arbeitspapier

Why Did Self-Employment Increase so Strongly in Germany?

Germany experienced a unique rise in the level of self-employment in the first two decades following unification. Applying the non-linear Blinder-Oaxaca decomposition technique, we find that the main factors driving these changes in the overall level of self-employment are demographic developments, the shift towards service sector employment, and a larger share of population holding a tertiary degree. While these factors explain most of the development in self-employment with employees and the overall level of self-employment in West Germany, their explanatory power is much lower for the stronger increase of solo self-employment and of self-employment in former socialist East Germany.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 8818

Classification
Wirtschaft
Entrepreneurship
Firm Behavior: Empirical Analysis
Subject
self-employment
non-linear Blinder-Oaxaca decomposition technique
entrepreneurship
Germany

Event
Geistige Schöpfung
(who)
Fritsch, Michael
Kritikos, Alexander S.
Sorgner, Alina
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2015

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Fritsch, Michael
  • Kritikos, Alexander S.
  • Sorgner, Alina
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2015

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