Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies

Virgilio Failla, Francesca Melillo, Toke Reichstein

    Publikation: KonferencebidragPaperForskningpeer review

    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 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.
    OriginalsprogEngelsk
    Publikationsdato2014
    Antal sider37
    StatusUdgivet - 2014
    BegivenhedThe DRUID Society Conference 2014: Entrepreneurship - Organization - Innovation - Copenhagen Business School, Frederiksberg, Danmark
    Varighed: 16 jun. 201418 jun. 2014
    Konferencens nummer: 36
    http://druid8.sit.aau.dk/druid/registrant/index/login/cid/15

    Konference

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

    Emneord

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

    Citationsformater