TY - RPRT AU - Fritsch, Michael AU - Kritikos, Alexander S. AU - Sorgner, Alina TI - Why Did Self-Employment Increase so Strongly in Germany? PY - 2015/Jan/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 8818 UR - https://www.iza.org/publications/dp8818 AB - 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. KW - entrepreneurship KW - non-linear Blinder-Oaxaca decomposition technique KW - self-employment KW - Germany ER -