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| Tekijä: | Roman, C. Congregado, E. Millan, J.M. |
| Otsikko: | Dependent self-employment as a way to evade employment protection legislation |
| Lehti: | Small business economics
2011 : OCT, VOL. 37:3 p. 363-392 |
| Asiasana: | Europe self-employment entrepreneurship labour markets job security occupational choice |
| Vapaa asiasana: | contracting out |
| Kieli: | eng |
| Tiivistelmä: | This study inspects whether the strictness of employment protection legislation gives employers an incentive to contract out work to their own paid employees by dependent self-employment, while decreasing the likelihood of transitions to independent self-employment by altering the relative valuation of risk between salaried work and self-employment in favour of the former. Discrete choice models are applied to data acquired from the European Community Household Panel from the period 1994-2001. To evaluate the hypotheses, a tentative individual measure of the potential severance payment to a worker in the case of dismissal is included as well as aggregated variables that try to capture differences in labour market institutions and macroeconomic environments. Evidence is found for a positive effect of the strictness of employment protection legislation and the potential severance payment on transitions to dependent self-employment. The opposite effects, nevertheless, are detected for those becoming independent self-employed. |
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