Publication: The sustainability of start-up firms among formerly wage workers
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2008-06
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Abstract
In this paper we analyse the survival of start-up firms among formerly wage workers in Spain. In
particular, we address the question of how long do these workers remain self-employed before entering
into unemployment or returning to a new paid-employment, using well-known duration model
techniques. Results show that a higher survival rate in self-employment is associated to men, prime-age
workers and individuals with higher previous labour turnover. Moreover, longer unemployment spells are
found to speed up the rate of transition to non-employment and to reduce that to paid employment.
Finally, the probability of exiting decreases with duration in self-employment.
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Self-employment, Duration analysis