Explaining International Variations in Self-Employment: Evidence from a Panel of OECD Countries

Parker, Simon C.; Robson, Martin

doi:10.2307/4135292

Cited by 204 publications

(133 citation statements)

References 38 publications

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“…High tax rates may reduce the motivation to become an entrepreneur, or being an entrepreneur may offer more ways to avoid tax liabilities. For a selection of 12 OECD countries spanning the period 1972-1996, Parker and Robson (2003 find that self-employment is positively and significantly correlated to personal income tax rates, and negatively and significantly related to employers' social 1 GEM now more correctly labels this as early-stage entrepreneurial activity (ESEA) instead of total early-stage entrepreneurial activity (TEEA), as it appears on some of the literature and in this article. (Schmitz 1989;De Wit and Van Winden 1991;Gifford 1998;Bosma et al 2002Bosma et al , 2003 have recognized the existence and role of an equilibrium entrepreneurship rate.…”

Section: Literature Reviewmentioning

confidence: 75%

New Zealand’s perfect storm of entrepreneurship and economic development

Frederick

Monsen²

2009

Small Bus Econ

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Applying a grounded-theory approach to analyzing the Global Entrepreneurship Monitor (GEM) data, we attempt to explain why New Zealand exhibits only a moderate level of economic development despite its high level of entrepreneurship. By statistically analyzing why 34 other countries in the 2005 GEM dataset exhibit small deviations from the classical quadratic curvilinear relationship between entrepreneurship and economic development, we develop a better understanding of the entrepreneurial framework conditions underlying New Zealand's large deviation from this trend line. Based on our findings from the GEM data we make policy recommendations that could aid in moving New Zealand (and other countries) closer toward the trend line and thus promote economic development.

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Section: Literature Reviewmentioning

confidence: 75%

New Zealand’s perfect storm of entrepreneurship and economic development

Frederick

Monsen²

2009

Small Bus Econ

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“…Moreover, as self-employed workers often do not enjoy the same entitlement to benefits as those in waged employment, a high replacement ratio may also deter some workers from leaving paid-employment for self-employment for fear of losing their access to benefits. Both Staber and Bogenhold (1993) and Parker and Robson (2000) report evidence of a negative relationship between the replacement ratio and the rate of self-employment in the OECD.…”

Section: Analysis Of the Relationship Between Self-employment And Thementioning

confidence: 99%

“…12 A number of studies find evidence of a link between income tax rates and the rate of self-employment (e.g. Blau, 1987;Robson, 1998;Parker and Robson, 2000;Bruce, 2000;Schuetze, 2000). Robson and Wren (1999) show that it is important to distinguish between the effects of changes in the marginal rate of income tax and changes in the average rate of tax.…”

Section: Analysis Of the Relationship Between Self-employment And Thementioning

confidence: 99%

Untitled

Robson

2003

Small Business Economics

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The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-pro t purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. AbstractUsing recently developed indicators of the strictness of employment protection legislation in OECD countries, the paper examines the issue of whether strict employment protection legislation may promote self-employment by encouraging employers to contract-out work to self-employed workers. Contrary to the results of previous studies, the paper finds little evidence for a positive relationship between self-employment and the strictness of EPL. While the raw data suggest that a positive relationship may indeed exist, once suitable control variables are introduced into the analysis, it appears that if anything, the opposite may be true: i.e. stricter employment protection legislation may actually reduce self-employment.JEL Codes: J21, J23* The analysis reported in this paper grew out of work originally carried out for the OECD. I am grateful to John Evans and Paula Adam of the OECD, for their help in providing some of the data used in the analysis and to John Evans, Simon Parker and an anonymous referee for their helpful comments on previous versions of the paper. Responsibility for the analysis and interpretation of the data, and for the views expressed in the paper, is mine alone.2

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“…On the other hand, Hoechle (2007) Entrepreneurship levels can be measured in terms of self employment (approach of the labor market, used among others by: Acs et al, 1994;Blanchflower, 2000;Blau, 1987;Bruce, 2000Bruce, , 2002Dunn et al, 2000;Gentry and Hubbart, 2004;Parker, 1996;Parker and Robson, 2004) or in terms of the number of companies created (ecological approach, used among others by: Armington and Acs, 2002;Bartelsman et al, 2004, Klapper, Leaven andRajan, 2006;Klapper et al. 2007, Klapper andLove, 2010;Verheul, 2009 Table 2 shows the countries included in each group.…”

Section: Challenges In Estimating the Effects Of Fdi The Quality Of mentioning

confidence: 99%

Foreign direct investment, institutional quality, economic freedom and entrepreneurship in emerging markets

Herrera-Echeverri

Haar

Estévez-Bretón

2014

Journal of Business Research

147

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This study investigates the relationship between foreign direct investment, institutional quality, economic freedom, and entrepreneurship in emerging markets. The research compares the capacity and appetite for business creation among high-income, low-income and emerging countries. The results are based on a panel study of data, from 2004 to 2009 for 87 countries, using as its source "The World Bank Entrepreneurship Snapshots" to look at the connection between business creation, institutional quality, market freedom and foreign direct investment (FDI). The findings reveal a strong positive relationship between institutional quality and business generation in all three of the above categories. Meanwhile, institutional quality and how this develops remains significant to business creation at least two years after a business is incubated, underscoring its importance as a contributory factor for creating an environment conducive to entrepreneurship. The freedom to create businesses and invest has a marked impact on business generation in emerging countries, while the influence of international trade appears more important as a spur to the genesis of business in low-income countries. Results also show that regulation of the free market has a short-term effect on business creation. Finally, there is a direct and significant relationship between FDI and business development in emerging countries. The effect of FDI is also felt for at least two years after the foreign investment. This result is consistent with "the spillover theory of entrepreneurship" (Acs et al, 2009;Görg and Strobl, 2002;Ayyagari et al, 2010).

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Explaining International Variations in Self-Employment: Evidence from a Panel of OECD Countries

Cited by 204 publications

References 38 publications

New Zealand’s perfect storm of entrepreneurship and economic development

New Zealand’s perfect storm of entrepreneurship and economic development

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Foreign direct investment, institutional quality, economic freedom and entrepreneurship in emerging markets

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