Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies

Virgilio Failla, Francesca Melillo, Toke Reichstein

    Research output: Contribution to conferencePaperResearchpeer-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.
    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.

    Conference

    ConferenceThe DRUID Society Conference 2014
    Number36
    LocationCopenhagen Business School
    CountryDenmark
    CityFrederiksberg
    Period16/06/201418/06/2014
    Internet address

    Keywords

      Cite this

      Failla, V., Melillo, F., & Reichstein, T. (2014). Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies . Paper presented at The DRUID Society Conference 2014, Frederiksberg, Denmark.
      Failla, Virgilio ; Melillo, Francesca ; Reichstein, Toke. / Unpredictably Stable : An Investigation into the Stayer-Mover Tendencies . Paper presented at The DRUID Society Conference 2014, Frederiksberg, Denmark.37 p.
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      Failla, V, Melillo, F & Reichstein, T 2014, 'Unpredictably Stable: An Investigation into the Stayer-Mover Tendencies ' Paper presented at, Frederiksberg, Denmark, 16/06/2014 - 18/06/2014, .

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

      2014. Paper presented at The DRUID Society Conference 2014, Frederiksberg, Denmark.

      Research output: Contribution to conferencePaperResearchpeer-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. Paper presented at The DRUID Society Conference 2014, Frederiksberg, Denmark.