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.
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.
Originalsprog | Engelsk |
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Publikationsdato | 2014 |
Antal sider | 37 |
Status | Udgivet - 2014 |
Begivenhed | The DRUID Society Conference 2014: Entrepreneurship - Organization - Innovation - Copenhagen Business School, Frederiksberg, Danmark Varighed: 16 jun. 2014 → 18 jun. 2014 Konferencens nummer: 36 http://druid8.sit.aau.dk/druid/registrant/index/login/cid/15 |
Konference
Konference | The DRUID Society Conference 2014 |
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Nummer | 36 |
Lokation | Copenhagen Business School |
Land/Område | Danmark |
By | Frederiksberg |
Periode | 16/06/2014 → 18/06/2014 |
Internetadresse |
Emneord
- Self-employment
- Paid-employment
- Mover-stayer
- Job matching
- Lock-in effect