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What drives self-employment survival for women and men? Evidence from Canada

TitleWhat drives self-employment survival for women and men? Evidence from Canada
Year of Publication2015
AuthorsRybczynski, K.
JournalJournal of Labor Research
Volume36
Pages27 - 43
Keywordscompeting risks, credit constraints, gender, self-employment
Abstract

This paper investigates the determinants of self-employment survival among women and men using the Canadian Survey of Labour and Income Dynamics. Survival is analyzed in the context of a single outcome (exiting self-employment) and in the context of multiple outcomes or competing risks (i.e. self-employment exit due to failure, versus non-failure exits). The largest detriment to survival for women is number of children. Whereas children improve survival rates for men. Non-participation in the labor force prior to starting a self-employment spell increases the probability of failure for women, but not men. Consistent with the liquidity constraint hypothesis, women who have personal wealth are less likely to exit self-employment. For women, this wealth effect does not depend on exit type. However, for men, the availability of personal wealth reduces the probability of exiting self-employment due to failure, but increases the probability of non-failure exits.

URLhttp://link.springer.com/article/10.1007/s12122-014-9194-4
DOI10.1007/s12122-014-9194-4
Document URLhttp://link.springer.com/content/pdf/10.1007%2fs12122-014-9194-4.pdf