%0 Report %A Glocker, Daniela %A Steiner, Viktor %T Self-Employment: A Way to End Unemployment? Empirical Evidence from German Pseudo-Panel Data %D 2007 %8 2007 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 2561 %U https://www.iza.org/publications/dp2561 %X This paper contributes to the policy-relevant question whether self-employment is a way out of (long-term) unemployment. We estimate the relationship between the entry rate into self-employment and previous (long-term) unemployment on the basis of pseudo-panel data for Germany in the period 1996-2002. The estimation method accounts for cohort fixed effects and measurement errors induced by the pseudo panel structure. We find that previous (long-term) unemployment significantly increases entry rates into self-employment for both men and women. These effects are quantitatively important, both in absolute terms and compared to other potential determinants of self-employment transitions, such as age, the level of vocational qualification and certain household characteristics. %K self-employment %K entrepreneurship %K entry rate %K start-ups %K unemployment %K pseudo-panel %K age and cohort effects