@TechReport{iza:izadps:dp8818, author={Fritsch, Michael and Kritikos, Alexander S. and Sorgner, Alina}, title={Why Did Self-Employment Increase so Strongly in Germany?}, year={2015}, month={Jan}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={8818}, url={https://www.iza.org/publications/dp8818}, abstract={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.}, keywords={entrepreneurship;non-linear Blinder-Oaxaca decomposition technique;self-employment;Germany}, }