Self-Employment Dynamics, State Dependence and Cross-Mobility Patterns
15 Pages Posted: 22 Dec 2008
This paper analyzes the mobility between self-employment, wage employment and non-employment. Using data for men in West Germany, we find strong true state dependence in all three states. Moreover, compared to wage employment, non-employment increases the probability of self-employment significantly, and self-employment goes along with a higher risk of future non-employment.
Keywords: self-employment, state dependence, labor market dynamics, unemployment
JEL Classification: J64, L26, C23, C25
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