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

Virgilio Failla, Francesca Melillo, Toke Reichstein

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    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.

    Conference

    ConferenceThe Academy of Management Annual Meeting 2014
    Number74
    CountryUnited States
    CityPhiladelphia
    Period01/08/201405/08/2014
    Internet address

    Bibliographical note

    CBS Library does not have access to the material

    Cite this

    Failla, V., Melillo, F., & Reichstein, T. (2014). Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies among Self-employed. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.
    Failla, Virgilio ; Melillo, Francesca ; Reichstein, Toke. / Unpredictably Stable : An Investigation into the Stayer-Mover Tendencies among Self-employed. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.
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    Failla, V, Melillo, F & Reichstein, T 2014, 'Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies among Self-employed' Paper presented at, Philadelphia, United States, 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. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.

    Research output: Contribution to conferencePaperResearchpeer-review

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    T1 - Unpredictably Stable

    T2 - An Investigation into the Stayer-Mover Tendencies among Self-employed

    AU - Failla,Virgilio

    AU - Melillo,Francesca

    AU - Reichstein,Toke

    N1 - CBS Library does not have access to the material

    PY - 2014

    Y1 - 2014

    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. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.