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Pushed into necessity? Labor market inequality and entrepreneurship of disadvantaged group

Author

Listed:
  • Joanna Tyrowicz

    (Group for Research in Applied Economics (GRAPE)
    University of Warsaw
    Institut für Arbeitsrecht und Arbeitsbeziehungen in der Europäischen Union (IAAEU)
    Institute of Labor Economics (IZA))

  • Magdalena Smyk

    (Group for Research in Applied Economics (GRAPE))

Abstract

Theoretical literature on entrepreneurship hints that labor market inequality may constitute a relevant push factor for necessity self-employment, as opposed to aspirational self-employment. Drawing on empirical confirmation, this insight is used in many policy recommendations. We provide a new approach to test and quantify the link between labor market inequality and self-employment. We exploit rich and diverse international data on patterns of self-employment from the Global Entrepreneurship Monitor. We focus on measures of labor market inequality for women, utilizing estimates of adjusted gender wage and gender employment gap, comparable for a large selection of countries and years. Our results show that greater gender disparities in access to and in compensation for wage employment are associated with necessity self-employment, but the effect is small. We find no link for the aspirational self-employment.

Suggested Citation

  • Joanna Tyrowicz & Magdalena Smyk, 2017. "Pushed into necessity? Labor market inequality and entrepreneurship of disadvantaged group," GRAPE Working Papers 6, GRAPE Group for Research in Applied Economics.
    • Handle: RePEc:fme:wpaper:6
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    References listed on IDEAS

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    Cited by:

    1. Joanna Tyrowicz & Siri Terjesen & Jakub Mazurek, 2017. "All on board? New evidence on board gender diversity from a large panel of firms," GRAPE Working Papers 5, GRAPE Group for Research in Applied Economics.

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    More about this item

    Keywords

    female entrepreneurship; gender wage gap; gender employment gap; GEM;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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