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Transitions to and From Self‐employment in Spain: An Empirical Analysis
Author(s) -
Carrasco Raquel
Publication year - 1999
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/1468-0084.00132
Subject(s) - unemployment , multinomial logistic regression , self employment , economics , sample (material) , logit , hazard , demographic economics , econometrics , market liquidity , hazard model , labour economics , business cycle , duration (music) , statistics , mathematics , entrepreneurship , economic growth , art , chemistry , literature , organic chemistry , finance , chromatography , keynesian economics
This paper investigates the influence of individual characteristics and the business cycle on the probability of entry into self‐employment and on self‐employment duration. We estimate multinomial logit and discrete competing risks models using data from a longitudinal sample of Spanish men for the period 1985–1991. The results indicate that unemployment raises the probability of entering self‐employment, but also increases the hazard of leaving self‐employment, especially into unemployment. Moreover, receiving unemployment benefits significantly reduces the probability of entering self‐employment. Liquidity constraints are important in determining enterpreneurial selection, but only for those who become self‐employed with employees.