Does solo self-employment serve as a 'stepping stone' to employership?
Michael Leith Cowling, Mark Wooden
Labour Economics | ELSEVIER | Published : 2021
This paper examines the extent to which solo self-employment serves as a vehicle for job creation. Using panel data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, a dynamic multinomial logit model of transitions between labour market states is estimated. The empirical strategy closely follows that used in a previous study employing household data from Germany by Lechmann and Wunder (2017). Estimates of true cross-state dependence between solo self-employment and employership are obtained that are relatively small. Further, the results imply that the probability of a male worker being an employer just two years after transitioning out of solo self-employment is on..View full abstract
Awarded by Australian Research Council
This work was supported by the Faculty of Business and Economics at the University of Melbourne and the Australian Research Council [Discovery Project #DP160103171].