The dynamics of solo self-employment: Persistence and transition to employership

Arbeitspapier

This study examines dynamics of solo self-employment. In particular, we investigate the extent of true state dependence and cross state dependence, i.e., whether experiencing solo self-employment causally affects the probability of becoming an employer in the future. We use data from the German Socio-Economic Panel to estimate dynamic multinomial logit models. Our results show that the extent of true (cross) state dependence is rather small. The observed persistence in solo self-employment as well as transitions from solo self-employment to employership can largely be explained by observed and unobserved heterogeneity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionspapiere ; No. 98

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Job, Occupational, and Intergenerational Mobility; Promotion
• Subject: state dependence ; dynamic multinomial logit ; solo self-employment ; own-account worker ; stepping stone

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lechmann, Daniel S. J. ; Wunder, Christoph
• Event: Veröffentlichung
• (who): Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik
• (where): Nürnberg
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/141451
• Last update: 10.03.2025, 11:44 AM CET