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Why did self-employment increase so strongly in Germany?

  • Germany experienced a unique rise in the level of self-employment in the first two decades following unification. Applying the nonlinear Blinder-Oaxaca decomposition technique, we find that the main factors driving these changes in the overall level of self-employment are demographic developments, the shift towards service sector employment and a larger share of population holding a tertiary degree. While these factors explain most of the development in self-employment with employees and the overall level of self-employment in West Germany, their explanatory power is much lower for the stronger increase in solo self-employment and in self-employment in former socialist East Germany.

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Author:Michael Fritsch, Alexander S. KritikosORCiDGND, Alina Sorgner
ISSN:0898-5626 (print)
ISSN:1464-5114 (online)
Parent Title (English):Entrepreneurship and regional development
Publisher:Routledge, Taylor & Francis Group
Place of publication:Abingdon
Document Type:Article
Year of first Publication:2015
Year of Completion:2015
Release Date:2017/03/27
Tag:D22; Germany; L26; entrepreneurship; nonlinear Blinder-Oaxaca decomposition technique; self-employment
First Page:307
Last Page:333
Funder:Research Data Centre of the Regional Statistical Office of Berlin; Research Data Centre of the Regional Statistical Office of Thuringia in Erfurt
Organizational units:Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften
Peer Review:Referiert