Self-Employment Dynamics, State Dependence and Cross-Mobility Patterns

15 Pages Posted: 22 Dec 2008

See all articles by Marco Caliendo

Marco Caliendo

University of Potsdam; Institute for the Study of Labor (IZA)

Arne Uhlendorff

IZA Institute of Labor Economics

Abstract

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

Suggested Citation

Caliendo, Marco and Uhlendorff, Arne, Self-Employment Dynamics, State Dependence and Cross-Mobility Patterns. IZA Discussion Paper No. 3900. Available at SSRN: https://ssrn.com/abstract=1318859

Marco Caliendo (Contact Author)

University of Potsdam ( email )

August-Bebel Strasse 89
Potsdam, 14482
Germany
+49(0)331/9773225 (Phone)
+49(0)331/9773210 (Fax)

HOME PAGE: http://www.uni-potsdam.de/en/empwifo/news.html

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Arne Uhlendorff

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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