Working Paper Series
The Effects of Displacement on Self-employment Survival
Abstract: A large literature has studied the effect of displacement
on labor market outcomes in general, but none has evaluated how the
displaced manage as self-employed. This paper studies how the survival of
the business is affected by displacement in connection to entry, using a
discrete-time proportional hazard model on a matched sample of displaced
and non-displaced individuals. The main result of the paper is that, as a
consequence of previous displacement, the probability of switching from
self-employment to paid employment decreases and the probability of
switching to unemployment is unaffected.
Keywords: Self-employment; Survival; Displacement; (follow links to similar papers)
JEL-Codes: J24; J63; J65; M13; (follow links to similar papers)
26 pages, September 24, 2008
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