Leaving Unemployment for Self-Employment: An Empirical Study by Frank ReizeLeaving Unemployment for Self-Employment: An Empirical Study by Frank Reize

Leaving Unemployment for Self-Employment: An Empirical Study

byFrank Reize

Paperback | March 1, 2004

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This doctoral dissertation, submitted to the University of Mannheim, was written during my employment as a research fellow at the Zentrum fiir Europaische Wirtschaftsforschung (ZEW - Centre for European Economic Research) in Mann­ heim. My work profited very much from the fruitful environment provided by the ZEW and particularly by the Department of Labour Markets, Human Resources and Social Policy. I am very grateful to my advisor, Professor Wolfgang Franz, for his support and inspiration. I am also indebted to Friedhelm Pfeiffer for encouraging me to work on the topicoftransition from unemployment to self-employment. Also, Part IIIof this study gained very much from the joint work with FriedheIm Pfeiffer. Fur­ thermore, I am much obliged to Professor JosefBniderl for evaluating this disser­ tation. I would like to thank the "Forderverein Wissenschaft und Praxis am Zentrum fiir Europaische Wirtschaftsforschung e.V." for financial support of part of this study. My work also benefited from the comments and the help of numerous people other than those mentioned above. Knowing that the list of acknowledgement is incomplete, I would like to thank Professor Francois Laisney and Matthias Almus for their valuable comments on the selection models, Professor William Greene for his helpful remarks on the bivariate probit model, Professor John Ham and an anonymous referee for their very valuable comments on preliminary work of this study, and Joachim Keller, Jens Kohlberger and Yibo Ren for providing excellent research assistance. Obviously, all remaining errors are my own responsibility.
Title:Leaving Unemployment for Self-Employment: An Empirical StudyFormat:PaperbackDimensions:241 pages, 23.5 × 15.5 × 0.01 inPublished:March 1, 2004Publisher:Springer-Verlag/Sci-Tech/TradeLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:3790801682

ISBN - 13:9783790801682

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Table of Contents

I: Facts, Institutional Arrangements and Evaluation Strategies.- 1 Overview and Introduction.- 2 Unemployment, Self-Employment and Bridging Allowance.- 2.1 Trends in Unemployment and Self-Employment in Germany.- 2.2 Causes of the Trends.- 2.2.1 Unemployment.- 2.2.2 Self-Employment.- 2.3 Bridging Allowance as an Active Labour Market Programme.- 2.3.1 Institutional Arrangements and Adjustments.- 2.3.2 Aim and Potential Impacts.- 3 Previous Empirical Findings on the Transition from Unemployment to Self-Employment.- 3.1 Analysis of Bridging Allowance.- 3.2 Further Empirical Findings.- 4 Evaluation Strategies.- 4.1 The Sample Selection Bias.- 4.2 Addressing the Sample Selection Bias.- 4.2.1 The Control Function Estimator.- 4.2.2 The Heckman Selection Model.- 4.3 Evaluation of Bridging Allowance at the Individual Level and at the Firm Level.- II: From Unemployment to Self-Employment.- 5 Theoretical Framework - An Extended Search Model.- 6 Determinants and Success of Self-Employment.- 6.1 The Empirical Model.- 6.2 The Discrete Hazard Rate Model with Unobserved Heterogeneity.- 6.2.1 The Hazard Rate in Discrete Time.- 6.2.2 Specifying Unobserved Heterogeneity.- 6.2.3 Testing the Independence of Irrelevant Alternatives (IIA) Assumption.- 6.3 Measuring the Success of Self-Employment.- 6.3.1 The Stability of Self-Employment.- 6.3.2 Income Effects of Self-Employment.- 6.4 Data, Sample and Variables.- 6.4.1 The German Socio-Economic Panel.- 6.4.2 Samples of Analysis.- 6.4.3 Variables, Definitions and Descriptives.- 6.5 Econometric Results.- 6.5.1 Choice of the Number of Mass Points.- 6.5.2 Determinants of Self-Employment.- 6.5.3 Stability of Self-Employment and the Effects of Bridging Allowance.- 6.5.4 The Development and Distribution of Income.- 6.6 Summary and Conclusions.- III: Firm Start-Ups by the Unemployed.- 7 Microeconomic Issues on Firm Start-Ups.- 8 Assessing the Impact of Bridging Allowance at the Firm Level.- 8.1 Econometric Modelling.- 8.1.1 Firm Start-Ups and Selectivity.- 8.1.2 Modelling Firm Survival.- 8.1.3 Modelling Employment Growth.- 8.2 Data, Variables and Descriptives.- 8.2.1 Data.- 8.2.2 Firm Heterogeneity and Subsidisation of the Unemployed.- 8.2.3 Factors Influencing Company Success and Firm Selection.- 8.2.4 Survival Probability and Employment Growth.- 8.3 Econometric Results.- 8.3.1 Start-Ups by the Unemployed.- 8.3.2 Firm Survival.- 8.3.3 Employment Growth.- 8.4 Summary and Conclusions.- IV: Concluding Remarks.- 9 Political Options and Future Research.- A.1 Calculation of the IRR and SPIR.- A.2 Tables of Chapter 6.- A.3 Figures of Chapter 6.- A.4 Tables of Chapter 8.- List of Figures.- List of Tables.