Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2008:23: The dynamics of combining self-employment and employment

Frédéric Delmar (), Timothy Folta () and Karl Wennberg ()
Additional contact information
Frédéric Delmar: Ecole de Management de Lyon
Timothy Folta: Purdue University
Karl Wennberg: Stockholm School of Economics, Postal: Box 6501, 113 83 Stockholm

Abstract: This study examines the extent to which wage-earning workers are simultaneously self-employed, a phenomenon not thoroughly investigated in earlier studies. We use matched employee-employer databases to present a detailed investigation of self-employment patterns within the post industrial sectors in Sweden from 1990 to 2002. We find that persons that combine self-employment with waged work constitute a majority of the total number of self-employed, and that most people enter self-employment by engaging first in combinatory work, indicating that the decision to move to self-employment is more complex than characterized in earlier research.

Keywords: Self-employment; income dynamics; entrepreneurship

JEL-codes: J24; J60

32 pages, November 4, 2008

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