Self‐Employed But Looking: A Labour Market Experiment

25 Pages Posted: 24 Dec 2014

See all articles by Philipp Koellinger

Philipp Koellinger

Vrije Universiteit Amsterdam

Julija Mell

ESSEC Business School

Irene Pohl

Erasmus University Rotterdam (EUR)

Christian Roessler

Erasmus University Rotterdam (EUR); Brown University

Theresa Treffers

Eindhoven University of Technology (TUE) - Department of Industrial Engineering and Innovation Sciences

Date Written: January 2015

Abstract

We examine whether having previously been self‐employed is a negative signal on the job market. In a UK field experiment where two applications of otherwise equally qualified individuals were sent out in response to the same vacancies in human resource management, we find that entrepreneurs systematically receive fewer responses than non‐entrepreneurs. Empirical studies that treat market wages as the opportunity cost of remaining self‐employed are therefore likely to overestimate alternative earnings to entrepreneurship.

Suggested Citation

Koellinger, Philipp and Mell, Julija and Pohl, Irene and Roessler, Christian and Treffers, Theresa, Self‐Employed But Looking: A Labour Market Experiment (January 2015). Economica, Vol. 82, Issue 325, pp. 137-161, 2015. Available at SSRN: https://ssrn.com/abstract=2542384 or http://dx.doi.org/10.1111/ecca.12115

Philipp Koellinger (Contact Author)

Vrije Universiteit Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

HOME PAGE: http://www.philipp-koellinger.com

Julija Mell

ESSEC Business School ( email )

3 Avenue Bernard Hirsch
CS 50105 CERGY
CERGY, CERGY PONTOISE CEDEX 95021
France

Irene Pohl

Erasmus University Rotterdam (EUR) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Christian Roessler

Erasmus University Rotterdam (EUR) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Brown University

Box 1860
Providence, RI 02912
United States

Theresa Treffers

Eindhoven University of Technology (TUE) - Department of Industrial Engineering and Innovation Sciences ( email )

Den Dolech 2
Eindhoven
Netherlands

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