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

Virgilio Failla, Francesca Melillo, Toke Reichstein

Publikation: Bidrag til konferencePaperForskningpeer review

Resumé

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.
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.

Konference

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

Bibliografisk note

CBS Bibliotek har ikke adgang til materialet

Citer dette

Failla, V., Melillo, F., & Reichstein, T. (2014). Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies among Self-employed. Afhandling præsenteret på The Academy of Management Annual Meeting 2014, Philadelphia, USA.
Failla, Virgilio ; Melillo, Francesca ; Reichstein, Toke. / Unpredictably Stable : An Investigation into the Stayer-Mover Tendencies among Self-employed. Afhandling præsenteret på The Academy of Management Annual Meeting 2014, Philadelphia, USA.
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Failla, V, Melillo, F & Reichstein, T 2014, 'Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies among Self-employed' Paper fremlagt ved The Academy of Management Annual Meeting 2014, Philadelphia, USA, 01/08/2014 - 05/08/2014, .

Unpredictably Stable : An Investigation into the Stayer-Mover Tendencies among Self-employed. / Failla, Virgilio; Melillo, Francesca; Reichstein, Toke.

2014. Afhandling præsenteret på The Academy of Management Annual Meeting 2014, Philadelphia, USA.

Publikation: Bidrag til konferencePaperForskningpeer review

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N2 - 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.

AB - 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.

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Failla V, Melillo F, Reichstein T. Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies among Self-employed. 2014. Afhandling præsenteret på The Academy of Management Annual Meeting 2014, Philadelphia, USA.