RT Generic
T1 Dependent self-employment across Europe: involuntariness, country's wealth and labor market institutions
A1 Carrasco, Raquel
A1 Hernanz, Virginia
A2 Universidad Carlos III de Madrid. Departamento de Economía, 
AB This paper investigates the degree of involuntariness in the entrepreneurial activity ofthe dependent solo self-employed, as well as the effect of the country's wealth and labormarket institutions. Using the unique information available in the 2017 European LaborForce Survey (EU-LFS) for 25 countries, we can properly identify the dependent soloself-employed and analyze to what extent they behave in accordance with anoccupational choice model when making their self-employment decision. For that, weaccount for the reasons why they enter into self-employment (voluntarily orinvoluntarily either out of necessity or requested by the former employer). The resultsindicate that involuntary self-employment, mostly due to being required by previousemployer, significantly increases the probability of being dependent solo versus nondependent self-employed. The wealthiest countries have a lower incidence of this groupof workers, mainly if they are involuntary self-employed. Moreover, labor marketinstitutions that decrease the flexibility of paid employment tend to increase theincidence of dependent solo self-employment. These results point to this group ofworkers being particularly vulnerable with the degree of vulnerability significantlyincreasing for those self-employed with a lesser degree of occupational choice.
SN 2340-5031
YR 2021
FD 2021-01-26
LK https://hdl.handle.net/10016/31788
UL https://hdl.handle.net/10016/31788
LA eng
NO The authors gratefully acknowledge research funding from "la Caixa" Social ResearchProjects, MINECO/FEDER Grants RTI2018-095231-B-I00, MDM 2014‐0431 and Comunidadde Madrid, MadEco‐CM (S2015/HUM‐3444)
DS e-Archivo
RD 16 jul. 2024