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Labour Market Trajectories of the Self-employed in the Netherlands

Author

Listed:
  • Elisabeth Beusch

    (Tilburg University)

  • Arthur Soest

    (Tilburg University)

Abstract

This paper employs sequence analysis to study the labour market trajectories of the self-employed. Using Dutch administrative data on more than 50,000 individuals including 13,000 with self-employment experience between 1989 and 2017, we find seven different clusters with distinct life-cycle patterns of several types of self-employment, wage employment, and non-employment. We find large heterogeneity across clusters in terms of income, wealth, and pension accumulation. In particular, the clusters of individuals with short self-employment spells but little labour market attachment in other periods are an economically vulnerable group, whereas those who are persistently self-employed are not worse off than employees.

Suggested Citation

  • Elisabeth Beusch & Arthur Soest, 2020. "Labour Market Trajectories of the Self-employed in the Netherlands," De Economist, Springer, vol. 168(1), pages 109-146, March.
    • Handle: RePEc:kap:decono:v:168:y:2020:i:1:d:10.1007_s10645-020-09358-x
    DOI: 10.1007/s10645-020-09358-x
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Sequence analysis; Self-employment; Pensions; Life-cycle;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving

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