TY  - RPRT
        AU  - Cowling, Michael Leith
AU  - Wooden, Mark
        TI  - Does Solo Self-Employment Serve as a 'Stepping Stone' to Employership?
        PY  - 2019/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 12841
        UR  - https://www.iza.org/publications/dp12841
        AB  - This paper examines the extent to which solo self-employment serves as a vehicle for job creation. Using panel data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, a dynamic multinomial logit model of transitions between labour market states is estimated. The empirical strategy closely follows that used in a previous study employing household data from Germany by Lechmann and Wunder (2017). Estimates of true cross-state dependence between solo self-employment and employership are obtained that are relatively small. 
Further, our results imply that the probability of a male remaining an employer just two years after transitioning out of solo self-employment is only 2% (and among women, it is virtually zero). The extent of both true cross-state dependence and true state dependence in employership is, however, much greater among individuals who have demonstrated a preference for self-employment in the past. This implies that pro-entrepreneurial policies that target more 'entrepreneurial' individuals will have more pronounced and long-term effects in stimulating job creation.
        KW  - solo self-employment
KW  - HILDA Survey
KW  - dynamic multinomial logit
KW  - state dependence
KW  - stepping stones
        ER  -