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Self-employment and the local business cycle
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies.
2015 (English)In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 44, no 1, 55-70 p.Article in journal (Refereed) Published
Abstract [en]

The business cycle is likely to be of importance for self-employment rates. When the economy is growing, business opportunities open up and encourage the set-up of new firms. In downturns self-employment may be a way to avoid unemployment. The strength of these pull and push factors may depend on the amount of human capital a person has. The findings in this paper show that although the local business cycle is of minor importance for total self-employment rates in Sweden there are heterogeneous effects across groups. People with higher human capital endowments are more likely to be pulled into self-employment, while those with lower human capital endowments are to a larger extent pushed into self-employment. This pattern is particularly strong for women. The study contributes to our knowledge of how individuals respond to business cycle changes as well as towards understanding why the association between the business cycle and self-employment rates differ across countries.

Place, publisher, year, edition, pages
2015. Vol. 44, no 1, 55-70 p.
Keyword [en]
Self-employment, local business cycle, panel data
National Category
Research subject
Economics; Economics
URN: urn:nbn:se:uu:diva-224511DOI: 10.1007/s11187-014-9592-2ISI: 000347409500004OAI: diva2:716956
Available from: 2014-05-13 Created: 2014-05-13 Last updated: 2015-05-14Bibliographically approved

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Svaleryd, Helena
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Uppsala Center for Fiscal Studies
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