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Small Business Economics

, Volume 1, Issue 4, pp 263–272 | Cite as

An empirical analysis of self-employment in the Netherlands

  • Gerrit de Wit
  • Frans A. A. M. van Winden
Article

Abstract

The choice between self-employment and paidemployment is analyzed empirically using a so-called endogenous switching model. The model features beside the choice equation earnings, equations for self-employed individuals and employees and is estimated using a two stage structural probit method. The model is applied to a unique (Dutch) data set including childhood ability and family background variables. The main findings of the empirical analysis are that the probability of self-employment depends positively on the earnings differential between self- and paid-employment, that a relatively high score on a IQ test applied at the age of 12 increases the likelihood of becoming self-employed, and that the employment status of the father strongly influences the decision to become self-employed.

Keywords

Empirical Analysis Employment Status Industrial Organization Background Variable Family Background 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1989

Authors and Affiliations

  • Gerrit de Wit
    • 1
  • Frans A. A. M. van Winden
    • 1
  1. 1.Department of Micro Economics Faculty of Economics and EconometricsUniversity of AmsterdamAmsterdamThe Netherlands

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