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The sustainability of start-up firms among formerly wage workers

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  • Cueto Iglesias, Begoña

Abstract

In this paper we analyse the survival of start-up firms among formerly wage workers in Spain. In particular, we address the question of how long do these workers remain self-employed before entering into unemployment or returning to a new paid-employment, using well-known duration model techniques. Results show that a higher survival rate in self-employment is associated to men, prime-age workers and individuals with higher previous labour turnover. Moreover, longer unemployment spells are found to speed up the rate of transition to non-employment and to reduce that to paid employment. Finally, the probability of exiting decreases with duration in self-employment.

Suggested Citation

  • Cueto Iglesias, Begoña, 2008. "The sustainability of start-up firms among formerly wage workers," DEE - Working Papers. Business Economics. WB wb083108, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
  • Handle: RePEc:cte:wbrepe:wb083108
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    References listed on IDEAS

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    Cited by:

    1. Paz Rico Belda & Bernardí Cabrer-Borrás, 2018. "Necessity and opportunity entrepreneurs: survival factors," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 249-264, June.
    2. Fonseca, Raquel & Lord, Simon, 2016. "Les déterminants du travail autonome au Québec et au Canada (1993-2010)," L'Actualité Economique, Société Canadienne de Science Economique, vol. 92(3), pages 489-513, Septembre.
    3. Ignacio Moral-Arce & Javier Martín-Román & Ángel L. Martín-Román, 2019. "Cessation of Activity Benefit for Spanish Self-employed Workers: A Heterogeneous Impact Evaluation," Hacienda Pública Española / Review of Public Economics, IEF, vol. 231(4), pages 41-79, December.
    4. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
    5. Bernardí Cabrer-Borrás & Paz Rico Belda, 2018. "Survival of entrepreneurship in Spain," Small Business Economics, Springer, vol. 51(1), pages 265-278, June.
    6. Surender Mor & Sonu Madan & Geoffrey R. Archer & Arvind Ashta, 2020. "Survival of the Smallest: A Study of Microenterprises in Haryana, India," Millennial Asia, , vol. 11(1), pages 54-78, April.
    7. Sandra M. Sánchez‐Cañizares & L. Javier Cabeza‐Ramírez & M. Dolores Guerrero‐Baena, 2020. "Evaluation of self‐employment support policies using survival analysis. The discounted flat rate in Andalusia (Spain)," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1389-1411, October.
    8. Raquel Fonseca & Simon Lord, 2015. "Les déterminants du travail autonome au Québec et au Canada (1993-201," Cahiers de recherche 1517, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    9. Tristan Boyer & Régis Blazy, 2014. "Born to be alive? The survival of innovative and non-innovative French micro-start-ups," Small Business Economics, Springer, vol. 42(4), pages 669-683, April.

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    Keywords

    Self-employment;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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