This paper examines the pattern of self-employment in Australia and the United States. We particularly focus on the movement of young people in and out of self-employment using comparable longitudinal data from the two countries. We find that the forces that influence whether a person becomes self-employed are broadly similar: in both countries skilled manual workers, males and older workers were particularly likely to move to self-employment. We also find that previous firm size, previous union status and previous earnings are important determinants of transitions to self-employment. The main difference we observe is that additional years of schooling had a positive impact on the probability of being self-employed in the US but were not a significant influence in Australia. However, the factors influencing the probability of leaving self-employment are different across the two countries. The only similarity is that in both countries younger individuals are more likely to leave.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
3746.
Length: Date of creation: Jun 1991 Date of revision: Handle: RePEc:nbr:nberwo:3746
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Blanchflower, D. & Oswald, A., 1990.
"What Makes A Young Entrepreneur?,"
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373, London School of Economics - Centre for Labour Economics.
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