Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies

Virgilio Failla, Francesca Melillo, Toke Reichstein

Publikation: Bidrag til konferencePaperForskningpeer review

Resumé

Does entrepreneurship lower individuals? employment turnover rates? The paper offers two reasons why this is the case - a matching mechanism and a lock-in effect. The paper offers theoretical justifications and seeks to empirically disentangle the two mechanisms. A matched employer-employee data covering the entire Danish labor force warrants the identification of a matched sample of entrepreneurs and non-entrepreneurs useful for rigorous analysis. The analysis reveals that self-employed stay longer in their employment status compared to individuals in paid-employment. This is
shown to be likely due to reduced attractiveness in the wage sector and sunk costs related lock-in effects. Results, however, also indicate that entrepreneurship may resolve mismatches of individuals in the labor market. This counterintuitive finding - self-employment yields greater employment stability - has fundamental implications for the understanding of the returns (labor market outcomes) to entrepreneurship.
Does entrepreneurship lower individuals? employment turnover rates? The paper offers two reasons why this is the case - a matching mechanism and a lock-in effect. The paper offers theoretical justifications and seeks to empirically disentangle the two mechanisms. A matched employer-employee data covering the entire Danish labor force warrants the identification of a matched sample of entrepreneurs and non-entrepreneurs useful for rigorous analysis. The analysis reveals that self-employed stay longer in their employment status compared to individuals in paid-employment. This is
shown to be likely due to reduced attractiveness in the wage sector and sunk costs related lock-in effects. Results, however, also indicate that entrepreneurship may resolve mismatches of individuals in the labor market. This counterintuitive finding - self-employment yields greater employment stability - has fundamental implications for the understanding of the returns (labor market outcomes) to entrepreneurship.

Konference

KonferenceThe DRUID Society Conference 2014
Nummer36
LokationCopenhagen Business School
LandDanmark
ByFrederiksberg
Periode16/06/201418/06/2014
Internetadresse

Emneord

  • Self-employment
  • Paid-employment
  • Mover-stayer
  • Job matching
  • Lock-in effect

Citer dette

Failla, V., Melillo, F., & Reichstein, T. (2014). Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies . Afhandling præsenteret på The DRUID Society Conference 2014, Frederiksberg, Danmark.
Failla, Virgilio ; Melillo, Francesca ; Reichstein, Toke. / Unpredictably Stable : An Investigation into the Stayer-Mover Tendencies . Afhandling præsenteret på The DRUID Society Conference 2014, Frederiksberg, Danmark.37 s.
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Failla, V, Melillo, F & Reichstein, T 2014, 'Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies ' Paper fremlagt ved The DRUID Society Conference 2014, Frederiksberg, Danmark, 16/06/2014 - 18/06/2014, .

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

2014. Afhandling præsenteret på The DRUID Society Conference 2014, Frederiksberg, Danmark.

Publikation: Bidrag til konferencePaperForskningpeer review

TY - CONF

T1 - Unpredictably Stable

T2 - An Investigation into the Stayer-Mover Tendencies

AU - Failla,Virgilio

AU - Melillo,Francesca

AU - Reichstein,Toke

PY - 2014

Y1 - 2014

N2 - Does entrepreneurship lower individuals? employment turnover rates? The paper offers two reasons why this is the case - a matching mechanism and a lock-in effect. The paper offers theoretical justifications and seeks to empirically disentangle the two mechanisms. A matched employer-employee data covering the entire Danish labor force warrants the identification of a matched sample of entrepreneurs and non-entrepreneurs useful for rigorous analysis. The analysis reveals that self-employed stay longer in their employment status compared to individuals in paid-employment. This isshown to be likely due to reduced attractiveness in the wage sector and sunk costs related lock-in effects. Results, however, also indicate that entrepreneurship may resolve mismatches of individuals in the labor market. This counterintuitive finding - self-employment yields greater employment stability - has fundamental implications for the understanding of the returns (labor market outcomes) to entrepreneurship.

AB - Does entrepreneurship lower individuals? employment turnover rates? The paper offers two reasons why this is the case - a matching mechanism and a lock-in effect. The paper offers theoretical justifications and seeks to empirically disentangle the two mechanisms. A matched employer-employee data covering the entire Danish labor force warrants the identification of a matched sample of entrepreneurs and non-entrepreneurs useful for rigorous analysis. The analysis reveals that self-employed stay longer in their employment status compared to individuals in paid-employment. This isshown to be likely due to reduced attractiveness in the wage sector and sunk costs related lock-in effects. Results, however, also indicate that entrepreneurship may resolve mismatches of individuals in the labor market. This counterintuitive finding - self-employment yields greater employment stability - has fundamental implications for the understanding of the returns (labor market outcomes) to entrepreneurship.

KW - Self-employment

KW - Paid-employment

KW - Mover-stayer

KW - Job matching

KW - Lock-in effect

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Failla V, Melillo F, Reichstein T. Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies . 2014. Afhandling præsenteret på The DRUID Society Conference 2014, Frederiksberg, Danmark.