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Self-Employment Dynamics, State Dependence and Cross-Mobility Patterns
| Authors | Caliendo, M. and Uhlendorff, A. |
| Year | 2008 |
| Reference | IZA Discussion Paper No. 3900, Bonn. |
| Keywords | Self-Employment, State
Dependence, Labor Market Dynamics,
Unobserved Heteroegeneity |
| JEL-Classification | J64, L26, C23, C25 |
| Presentations | 2007 EEA in Budapest, 2007 EALE in Oslo, 2008 ESPE in London, 2008 Verein fuer Socialpolitik in Graz |
| Download | IZA Discussion Paper from December 2008:   PDF |
| Abstract | This paper analyzes self-employment dynamics in West Germany over
the time period 1984-2004. Using dynamic multinomial logit panel
data models with random effects we are able to analyze the mobility
between self-employment, wage employment and non-employment. This
allows us to draw conclusions about state dependence and
cross-mobility patterns. The results indicate strong true state
dependence in all three states. The probability to enter
self-employment is higher for not employed individuals when compared
to individuals in wage employment. However, compared to wage
employment, self-employment goes along with a higher risk of
non-employment in the next period. Moreover, the transition
probabilities vary with education, age, intergenerational links and
macro-economic conditions. |
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