%0 Report %A Fritsch, Michael %A Kritikos, Alexander S. %A Sorgner, Alina %T Why Did Self-Employment Increase so Strongly in Germany? %D 2015 %8 2015 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 8818 %U https://www.iza.org/index.php/publications/dp8818 %X Germany experienced a unique rise in the level of self-employment in the first two decades following unification. Applying the non-linear 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 of solo self-employment and of self-employment in former socialist East Germany. %K entrepreneurship %K non-linear Blinder-Oaxaca decomposition technique %K self-employment %K Germany