Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies among Self-employed

Virgilio Failla, Francesca Melillo, Toke Reichstein

    Publikation: KonferencebidragPaperForskningpeer review

    Abstract

    Does entrepreneurship lower the losses associated with labor market mismatching by lowering employment turnover? This paper examines whether a transition to self-employment induces a shift into an individual’s stayer-mover tendency. Using a propensity score-matching technique, the hypothesis is tested on matched employer-employee data from the entire Danish population. The analysis reveals that self-employed stay longer in their employment status compared to individuals in paid-employment. This effect is not explained by reduced attractiveness to the wage sector (lock-in effect). We interpret this finding by crafting a theory in which entrepreneurship may resolve mismatches of individuals in the labor market and may inherently increase the value of non-monetary benefits, namely independence. This counterintuitive finding – self-employment yields greater stability, all else equal – has fundamental implications for the understanding of the returns to entrepreneurship.
    OriginalsprogEngelsk
    Publikationsdato2014
    StatusUdgivet - 2014
    BegivenhedThe Academy of Management Annual Meeting 2014: The Power of Words - Philadelphia, USA
    Varighed: 1 aug. 20145 aug. 2014
    Konferencens nummer: 74
    http://aom.org/annualmeeting/

    Konference

    KonferenceThe Academy of Management Annual Meeting 2014
    Nummer74
    Land/OmrådeUSA
    ByPhiladelphia
    Periode01/08/201405/08/2014
    Internetadresse

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