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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    abstract = "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.",
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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

    M3 - Paper

    ER -

    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.