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Founders' experience and self-employment duration: the importance of being a ‘jack-of-all-trades‘ ; an analysis based on competing risks

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Oberschachtsiek, Dirk

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Corporate Editor Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB)
Abstract "This paper investigates how founders’ experience and professional background affect the duration of periods of self-employment, and to what extent the duration is affected by a balanced skill set in particular. In this context, an occupational choice framework based on a competing risk setting is used that considers an exit choice as a time varying incident. Particularly, a tailor-made variable is used reflecting the balancing property of the individuals’ professional background. The results show that most self-employed individuals find themselves unemployed again. Industrial experience, experience in the service or product, high motivation and professional background as a crafts master are clearly associated with comparative advantages in self-employment. It turns out that a broad range of competences is not sufficient in order to prolong the expected duration. However, a comprehensive set of skills combined with sales/business experience can extend the duration of selfemployment." [authors abstract]
Keywords self-employment; qualification; competition; risk; occupation; qualification requirements; qualification for key function; entrepreneur; risk behavior; professional experience; duration
Classification Labor Market Research; Occupational Research, Occupational Sociology
Document language English
Publication Year 2008
City Nürnberg
Page/Pages 27 p.
Series IAB Discussion Paper: Beiträge zum wissenschaftlichen Dialog aus dem Institut für Arbeitsmarkt- und Berufsforschung, 40/2008
Status Published Version
Licence Deposit Licence - No Redistribution, No Modifications
data provider This metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne