Table S1. Departure from self-employment
-Competing risks models: Special focus on individual characteristics-
Prob [TSE = j| TSEj -1]Number of observations / 26,873
Number of spells / 9,753
Number of censored spells / 8,086
Specification / (I) / (II) / (III)
Number of completed spells / 799 / 363 / 505
Log likelihood / -7,266.6 / -7,219 / -7,187.1
Risk 1: Exits to paid-employment
Predicted probability (y) / 0.0239 / 0.0232 / 0.023
Variables / dy/dx / t-stat. / dy/dx / t-stat. / dy/dx / t-stat.
Demographic characteristics
Male / 0.004 / 1.92* / 0.0051 / 2.56** / 0.0062 / 3.16***
Age / -0.0027 / -3.27*** / -0.0025 / -3.14*** / -0.0024 / -3.08***
Age (squared) / 2.40E-05 / 2.31** / 2.31E-05 / 2.3** / 2.21E-05 / 2.23**
Cohabiting / 0.0014 / 0.63 / 0.0009 / 0.42 / 0.0013 / 0.59
Number of children under 14 / -9.99E-05 / -0.1 / 1.04E-04 / 0.1 / 1.61E-04 / 0.16
Relative(s) working as self-employed / -0.0048 / -2.48** / -0.0037 / -1.91* / -0.0037 / -1.9*
Education
Secondary education (1) / -0.0025 / -1.19 / -0.0017 / -0.81 / -0.0016 / -0.77
University studies (1) / -0.0034 / -1.41 / -0.0021 / -0.85 / -0.0023 / -0.98
Employment characteristics
Industrial sector (2) / 0.0021 / 0.66 / 0.0016 / 0.55 / 0.0024 / 0.78
Financial services (2) / -2.12E-04 / -0.07 / -8.87E-05 / -0.03 / 1.08E-04 / 0.04
Wholesale, hotels. restaurants & transport (2) / -0.0041 / -1.67* / -0.0045 / -1.9* / -0.0028 / -1.16
Other services (2) / -0.0004 / -0.12 / -0.001 / -0.31 / -0.0017 / -0.54
Hours of work / -0.0012 / -2.97***
Hours of work (squared) / 8.15E-06 / 2.37**
Previous experience
Previous experience as self-employed / -0.0086 / -4.05*** / -0.0073 / -3.4*** / -0.0073 / -3.4***
Previous experience as paid-employed / 0.0037 / 1.66* / 0.0034 / 1.59 / 0.0033 / 1.57
Previous experience as inactive / -0.004 / -1.51 / -0.0041 / -1.6 / -0.0046 / -1.87*
Previous labour market situation
Entering self-employment from unemployment / 0.0074 / 3.25*** / 0.0061 / 2.76*** / 0.0058 / 2.68***
Incomes
Dwelling owner / -0.0094 / -4.22*** / -0.0093 / -4.24***
Receiving capital and property incomes (1 lag) / -0.0031 / -1.63 / -0.0031 / -1.63
Self-employment incomes (1 lag) ('000) / -3.21E-04 / -3.35*** / -0.0003 / -3.14***
Duration dependence
Ln (Duration as self-employed) / -0.0119 / -10.2*** / -0.0099 / -8.05*** / -0.0098 / -8.06***
Country dummies
Austria (3) / -0.009 / -2.01** / -0.01 / -2.48** / -0.0095 / -2.31**
Belgium (3) / -0.0088 / -2.27** / -0.0103 / -3.02*** / -0.0096 / -2.73***
Denmark (3) / 0.0069 / 0.95 / 0.0061 / 0.86 / 0.0057 / 0.83
Finland (3) / 0.005 / 0.91 / 0.0021 / 0.44 / 0.0016 / 0.35
France (3) / -0.0055 / -1.28 / -0.0054 / -1.29 / -0.0049 / -1.13
Germany (3) / -0.0067 / -2.49** / -0.0084 / -3.34*** / -0.0084 / -3.4***
Greece (3) / 0.0013 / 0.33 / 0.001 / 0.26 / 0.0024 / 0.59
Ireland (3) / -0.0082 / -2.46** / -0.007 / -2.05** / -0.007 / -2.04**
Italy (3) / -0.0115 / -5.01*** / -0.0124 / -5.55*** / -0.0128 / -5.88***
Netherlands (3) / 0.0024 / 0.38 / 0.0011 / 0.18 / 0.0008 / 0.14
Portugal (3) / 0.0036 / 1 / 2.05E-04 / 0.06 / -2.67E-05 / -0.01
United Kingdom (3) / 0.0076 / 1.68* / 0.0079 / 1.76* / 0.0074 / 1.7*
Reference categories: (1) No education or primary education, (2) Construction sector, (3) Spain
Notes: *** denotes significance at the 1% level; ** denotes significance at the 5% level; * denotes significance at the 10% level.
Risk 2: Exits to unemployment
Predicted probability (y) / 0.0088 / 0.0079 / 0.0078
Variables / dy/dx / t-stat. / dy/dx / t-stat. / dy/dx / t-stat.
Demographic characteristics
Male / -0.0007 / -0.62 / 9.47E-05 / 0.09 / 0.0006 / 0.63
Age / -0.0015 / -3.31*** / -0.0012 / -3.15*** / -0.0012 / -3.12***
Age (squared) / 1.91E-05 / 3.46*** / 1.67E-05 / 3.36*** / 1.61E-05 / 3.32***
Cohabiting / -0.0034 / -2.26** / -0.0031 / -2.29** / -0.0029 / -2.17**
Number of children under 14 / 2.30E-04 / 0.38 / 0.0003 / 0.51 / 0.0003 / 0.55
Relative(s) working as self-employed / -0.0007 / -0.67 / -0.0005 / -0.46 / -0.0005 / -0.53
Education
Secondary education (1) / -0.0022 / -2.09** / -0.0017 / -1.72* / -0.0016 / -1.66*
University studies (1) / -0.0042 / -3.47*** / -0.0033 / -2.88*** / -0.0033 / -2.96***
Employment characteristics
Industrial sector (2) / 0.0014 / 0.65 / 0.0011 / 0.58 / 0.0016 / 0.78
Financial services (2) / -0.0003 / -0.16 / -0.0003 / -0.14 / -1.53E-04 / -0.08
Wholesale, hotels. restaurants & transport (2) / 0.0037 / 2.15** / 0.003 / 1.95* / 0.0039 / 2.46**
Other services (2) / 0.0021 / 0.86 / 0.0015 / 0.72 / 0.0012 / 0.58
Hours of work / -0.0006 / -3.3***
Hours of work (squared) / 3.93E-06 / 2.62***
Previous experience
Previous experience as self-employed / -0.005 / -4.87*** / -0.004 / -4.08*** / -0.0039 / -4.02***
Previous experience as paid-employed / -0.0036 / -3.58*** / -0.0034 / -3.61*** / -0.0033 / -3.64***
Previous experience as inactive / -0.0027 / -2.29** / -0.0025 / -2.29** / -0.0026 / -2.53**
Previous labour market situation
Entering self-employment from unemployment / 0.0105 / 6.42*** / 0.0087 / 5.82*** / 0.0083 / 5.7***
Incomes
Dwelling owner / -0.0027 / -2.31** / -0.0026 / -2.3**
Receiving capital and property incomes (1 lag) / -0.0008 / -0.79 / -0.0007 / -0.78
Self-employment incomes (1 lag) ('000) / -0.0003 / -4.27*** / -0.0003 / -4.06***
Duration dependence
Ln (Duration as self-employed) / -0.0069 / -10.87*** / -0.0051 / -7.15*** / -0.005 / -7.2***
Country dummies
Austria (3) / -0.0056 / -2.65*** / -0.0054 / -3.03*** / -0.0052 / -2.87***
Belgium (3) / 0.0033 / 0.94 / 0.0014 / 0.5 / 0.0017 / 0.6
Denmark (3) / -0.0013 / -0.42 / -0.0012 / -0.43 / -0.0013 / -0.47
Finland (3) / 0.0063 / 1.69* / 0.004 / 1.34 / 0.0036 / 1.27
France (3) / -0.0058 / -3.61*** / -0.0051 / -3.31*** / -0.0049 / -3.11***
Germany (3) / 0.0035 / 1.78* / 0.0024 / 1.4 / 0.0022 / 1.29
Greece (3) / 0.0014 / 0.55 / 0.0026 / 1.03 / 0.0032 / 1.19
Ireland (3) / -0.003 / -1.67* / -0.0021 / -1.18 / -0.0022 / -1.23
Italy (3) / -0.0008 / -0.57 / -0.001 / -0.73 / -0.0013 / -1.03
Netherlands (3) / -0.0033 / -1.22 / -0.0031 / -1.31 / -0.0031 / -1.37
Portugal (3) / -0.0052 / -4.05*** / -0.0053 / -4.91*** / -0.0053 / -4.97***
United Kingdom (3) / -0.0022 / -1.15 / -0.0013 / -0.7 / -0.0016 / -0.86
Reference categories: (1) No education or primary education, (2) Construction sector, (3) Spain
Notes: *** denotes significance at the 1% level; ** denotes significance at the 5% level; * denotes significance at the 10% level.
Risk 3: Exits to inactivity
Predicted probability (y) / 0.0103 / 0.0099 / 0.0098
Variables / dy/dx / t-stat. / dy/dx / t-stat. / dy/dx / t-stat.
Demographic characteristics
Male / -0.0261 / -9.92*** / -0.0234 / -9.35*** / -0.0211 / -8.81***
Age / -0.0022 / -5.27*** / -0.0021 / -5.07*** / -0.002 / -4.97***
Age (squared) / 3.01E-05 / 5.82*** / 2.85E-05 / 5.66*** / 2.73E-05 / 5.52***
Cohabiting / 0.0059 / 5.75*** / 0.0055 / 5.4*** / 0.0054 / 5.4***
Number of children under 14 / -7.21E-05 / -0.13 / -6.34E-06 / -0.01 / -7.99E-05 / -0.14
Relative(s) working as self-employed / -0.0038 / -3.87*** / -0.0035 / -3.71*** / -0.0036 / -3.82***
Education
Secondary education (1) / -0.0011 / -0.9 / -0.0008 / -0.72 / -0.0009 / -0.81
University studies (1) / -0.0045 / -3.81*** / -0.004 / -3.39*** / -0.0042 / -3.6***
Employment characteristics
Industrial sector (2) / 0.0061 / 1.94* / 0.0058 / 1.91* / 0.0061 / 1.98**
Financial services (2) / 0.0019 / 0.7 / 0.002 / 0.77 / 0.002 / 0.78
Wholesale, hotels. restaurants & transport (2) / 0.0032 / 1.56 / 0.0028 / 1.42 / 0.0036 / 1.77*
Other services (2) / 0.0025 / 0.91 / 0.0023 / 0.87 / 0.0017 / 0.68
Hours of work / -0.0009 / -4.96***
Hours of work (squared) / 6.86E-06 / 4.44***
Previous experience
Previous experience as self-employed / -0.0042 / -3.99*** / -0.0036 / -3.28*** / -0.0033 / -3.03***
Previous experience as paid-employed / -0.0039 / -3.6*** / -0.004 / -3.77*** / -0.0039 / -3.76***
Previous experience as inactive / 0.0034 / 1.97** / 0.003 / 1.82* / 0.0026 / 1.66*
Previous labour market situation
Entering self-employment from unemployment / 0.0014 / 1.15 / 0.0012 / 0.99 / 0.0009 / 0.81
Incomes
Dwelling owner / -1.39E-05 / -0.01 / -8.40E-05 / -0.07
Receiving capital and property incomes (1 lag) / -0.0008 / -0.81 / -0.0009 / -0.86
Self-employment incomes (1 lag) ('000) / -1.92E-04 / -2.79*** / -1.73E-04 / -2.59***
Duration dependence
Ln (Duration as self-employed) / -0.0054 / -7.81*** / -0.0046 / -6.21*** / -0.0044 / -6.08***
Country dummies
Austria (3) / -0.0034 / -1.28 / -0.0034 / -1.34 / -0.0035 / -1.43
Belgium (3) / -0.0067 / -3.75*** / -0.0068 / -4.07*** / -0.0065 / -3.88***
Denmark (3) / -0.0066 / -3.21*** / -0.0063 / -3.09*** / -0.0063 / -3.13***
Finland (3) / -0.0036 / -1.79* / -0.0038 / -2.05** / -0.0039 / -2.13**
France (3) / -0.006 / -3.21*** / -0.0054 / -2.69*** / -0.0052 / -2.57**
Germany (3) / 0.0007 / 0.39 / 0.0004 / 0.21 / 0.0002 / 0.13
Greece (3) / 0.0081 / 2.42** / 0.0105 / 2.76*** / 0.0111 / 2.85***
Ireland (3) / 0.0009 / 0.31 / 0.0013 / 0.45 / 0.0007 / 0.26
Italy (3) / -0.0015 / -0.9 / -0.0015 / -0.93 / -0.0018 / -1.21
Netherlands (3) / -0.0071 / -3.78*** / -0.0068 / -3.64*** / -0.0069 / -4.04***
Portugal (3) / -0.0043 / -2.93*** / -0.0047 / -3.43*** / -0.0047 / -3.48***
United Kingdom (3) / 0.018 / 3.83*** / 0.019 / 3.98*** / 0.0175 / 3.85***
Reference categories: (1) No education or primary education, (2) Construction sector, (3) Spain
Notes: *** denotes significance at the 1% level; ** denotes significance at the 5% level; * denotes significance at the 10% level.
Table S2. Departure from self-employment
-Competing risks models: Special focus on labour market institutions-
Prob [TSE = j| TSEj -1]Number of observations / 26,873
Number of spells / 9,753
Number of censored spells / 8,086
Specification / (I) / (II) / (III)
Number of completed spells / 799 / 363 / 505
Log likelihood / -7,216.1 / -7,181.3 / -7,241.4
Risk 1: Exits to paid-employment
Predicted probability (y) / 0.0229 / 0.0229 / 0.0236
Variables / dy/dx / t-stat. / dy/dx / t-stat. / dy/dx / t-stat.
Demographic characteristics
Male / 0.006 / 3.07*** / 0.006 / 3.07*** / 0.0054 / 2.65***
Age / -0.0023 / -3.01*** / -0.0023 / -2.96*** / -0.0023 / -2.86***
Age (squared) / 2.15E-05 / 2.16** / 2.08E-05 / 2.1** / 2.18E-05 / 2.14**
Cohabiting / 0.0023 / 1.04 / 0.0024 / 1.1 / 0.0028 / 1.28
Number of children under 14 / -1.79E-04 / -0.18 / -2.47E-04 / -0.25 / -2.02E-05 / -0.02
Relative(s) working as self-employed / -0.003 / -1.51 / -0.0029 / -1.51 / -0.0044 / -2.28**
Education
Secondary education (1) / -0.0036 / -1.93* / -0.0033 / -1.74* / -0.0028 / -1.47
University studies (1) / -0.0031 / -1.41 / -0.0029 / -1.31 / -0.0021 / -0.91
Employment characteristics
Industrial sector (2) / 0.002 / 0.66 / 0.0018 / 0.59 / 0.0013 / 0.42
Financial services (2) / -2.21E-04 / -0.07 / -0.0003 / -0.09 / -0.0007 / -0.25
Wholesale, hotels. restaurants & transport (2) / -0.0028 / -1.19 / -0.0028 / -1.17 / -0.0042 / -1.76*
Other services (2) / -0.002 / -0.67 / -0.0017 / -0.57 / -0.0018 / -0.58
Hours of work / -0.0012 / -2.93*** / -0.0012 / -2.98*** / -0.0012 / -2.96***
Hours of work (squared) / 7.87E-06 / 2.28** / 7.92E-06 / 2.31** / 8.65E-06 / 2.47**
Previous experience
Previous experience as self-employed / -0.005 / -2.22** / -0.005 / -2.19** / -0.0068 / -3.14***
Previous experience as paid-employed / 0.0058 / 2.49** / 0.0065 / 2.75*** / 0.0056 / 2.39**
Previous experience as inactive / -0.0026 / -0.96 / -0.0019 / -0.68 / -0.0033 / -1.23
Previous labour market situation
Entering self-employment from unemployment / 0.01 / 2.99*** / 0.0075 / 1.9* / 0.0097 / 2.89***
Incomes
Dwelling owner / -0.0096 / -4.39*** / -0.0092 / -4.26*** / -0.0106 / -4.72***
Receiving capital and property incomes (1 lag) / -0.0028 / -1.58 / -0.0023 / -1.23 / -1.02E-04 / -0.05
Self-employment incomes (1 lag) ('000) / -0.0003 / -3.45*** / -0.0003 / -3.41*** / -0.0003 / -3.15***
Duration dependence
Ln (Duration as self-employed) / -0.0095 / -7.94*** / -0.0091 / -7.61*** / -0.0112 / -9.22***
Labour market institutions
Start-up incentives as 0/000 of GDP / 0.0003 / 0.54 / 0.0009 / 1.62
Effect of Start-up incentives
when entering self-employment from unemployment / -0.0022 / -2.39** / -0.0021 / -2.25**
Employment incentives as 0/000 of GDP / -0.0003 / -1.89*
Effect of Employment incentives
when entering self-employment from unemployment / -1.74E-04 / -0.75
Unemployment benefits index (0-6) / 0.01 / 3.36*** / 0.0101 / 3.4***
Overall EPL index (0-6) / -0.0206 / -3.86***
Overall EPL index (squared) / 0.0042 / 3.57***
Statutory tax rates on dividend income (%) / 1.51E-04 / 0.89 / 1.00E-04 / 0.62
Business cycle
National unemployment rate (%) / 0.0007 / 3.22*** / 0.0006 / 2.83*** / 0.0007 / 2.62***
Aggregated environment
Services sector share (%) / 1.12E-04 / 1.35 / 2.44E-05 / 0.29
Rule of law (0-6) / 0.0151 / 6.18*** / 0.0125 / 4.67***
Reference categories: (1) No education or primary education, (2) Construction sector
Notes: *** denotes significance at the 1% level; ** denotes significance at the 5% level; * denotes significance at the 10% level.
Risk 2: Exits to unemployment
Predicted probability (y) / 0.0079 / 0.0072 / 0.0080
Variables / dy/dx / t-stat. / dy/dx / t-stat. / dy/dx / t-stat.
Demographic characteristics
Male / 0.0004 / 0.4 / 0.0004 / 0.49 / 0.0005 / 0.52
Age / -0.0012 / -3.09*** / -0.0011 / -3.04*** / -0.0012 / -3.1***
Age (squared) / 1.64E-05 / 3.3*** / 1.46E-05 / 3.24*** / 1.69E-05 / 3.34***
Cohabiting / -0.0024 / -1.82* / -0.002 / -1.72* / -0.0025 / -1.88*
Number of children under 14 / 2.30E-04 / 0.42 / 1.75E-04 / 0.35 / 0.0003 / 0.5
Relative(s) working as self-employed / -0.0004 / -0.46 / -0.0003 / -0.28 / -0.0007 / -0.75
Education
Secondary education (1) / -0.001 / -0.99 / -0.0008 / -0.86 / -0.0005 / -0.47
University studies (1) / -0.0022 / -1.9* / -0.0021 / -1.93* / -0.0019 / -1.54
Employment characteristics
Industrial sector (2) / 0.0018 / 0.87 / 0.0015 / 0.81 / 0.0018 / 0.84
Financial services (2) / -0.0003 / -0.17 / -0.0003 / -0.16 / -2.48E-04 / -0.13
Wholesale, hotels. restaurants & transport (2) / 0.0043 / 2.71*** / 0.0039 / 2.66*** / 0.0043 / 2.65***
Other services (2) / 0.0013 / 0.61 / 0.0013 / 0.68 / 0.0016 / 0.72
Hours of work / -0.0006 / -3.26*** / -0.0005 / -3.34*** / -0.0006 / -3.44***
Hours of work (squared) / 3.91E-06 / 2.59*** / 3.61E-06 / 2.64*** / 4.27E-06 / 2.79***
Previous experience
Previous experience as self-employed / -0.0032 / -3.02*** / -0.0028 / -2.82*** / -0.0033 / -3.07***
Previous experience as paid-employed / -0.0023 / -2.28** / -0.0017 / -1.73* / -0.0025 / -2.42**
Previous experience as inactive / -0.0018 / -1.55 / -0.0011 / -0.89 / -0.0019 / -1.59
Previous labour market situation
Entering self-employment from unemployment / 0.0109 / 4.84*** / 0.0031 / 1.54 / 0.0109 / 4.71***
Incomes
Dwelling owner / -0.0032 / -2.76*** / -0.0028 / -2.64*** / -0.0032 / -2.72***
Receiving capital and property incomes (1 lag) / -0.0005 / -0.51 / -0.0003 / -0.31 / -1.62E-04 / -0.17
Self-employment incomes (1 lag) ('000) / -0.0003 / -4.17*** / -2.41E-04 / -4.09*** / -0.0003 / -3.89***
Duration dependence
Ln (Duration as self-employed) / -0.0046 / -6.93*** / -0.004 / -6.22*** / -0.005 / -7.24***
Labour market institutions
Start-up incentives as 0/000 of GDP / 1.13E-04 / 0.37 / -0.0003 / -0.91
Effect of Start-up incentives
when entering self-employment from unemployment / -0.001 / -2.31** / -0.001 / -2.07**
Employment incentives as 0/000 of GDP / -0.0005 / -4.71***
Effect of Employment incentives
when entering self-employment from unemployment / 0.0003 / 2.57**
Unemployment benefits index (0-6) / -0.003 / -1.84* / -0.0019 / -1.29
Overall EPL index (0-6) / -0.0019 / -0.65
Overall EPL index (squared) / 0.0005 / 0.78
Statutory tax rates on dividend income (%) / 9.45E-05 / 1.09 / 6.83E-05 / 0.97
Business cycle
National unemployment rate (%) / 0.0007 / 5.72*** / 0.0005 / 4.87*** / 0.0007 / 5.61***
Aggregated environment
Services sector share (%) / 6.42E-05 / 1.44 / -2.53E-05 / -0.59
Rule of law (0-6) / 0.0027 / 2.08** / 3.21E-05 / 0.02
Reference categories: (1) No education or primary education, (2) Construction sector
Notes: *** denotes significance at the 1% level; ** denotes significance at the 5% level; * denotes significance at the 10% level.
Risk 3: Exits to inactivity
Predicted probability (y) / 0.0104 / 0.0097 / 0.0105
Variables / dy/dx / t-stat. / dy/dx / t-stat. / dy/dx / t-stat.
Demographic characteristics
Male / -0.0226 / -9.2*** / -0.0212 / -8.94*** / -0.0236 / -9.4***
Age / -0.0021 / -4.98*** / -0.002 / -5.02*** / -0.002 / -4.79***
Age (squared) / 2.91E-05 / 5.64*** / 2.75E-05 / 5.65*** / 2.83E-05 / 5.47***
Cohabiting / 0.006 / 5.76*** / 0.0058 / 5.94*** / 0.0061 / 5.93***
Number of children under 14 / -2.10E-04 / -0.37 / -0.0003 / -0.48 / -0.0003 / -0.51
Relative(s) working as self-employed / -0.0037 / -3.77*** / -0.0033 / -3.62*** / -0.0044 / -4.52***
Education
Secondary education (1) / -0.0009 / -0.85 / -0.0006 / -0.61 / 2.25E-04 / 0.2
University studies (1) / -0.0034 / -2.78*** / -0.003 / -2.63*** / -0.003 / -2.32**
Employment characteristics
Industrial sector (2) / 0.0054 / 1.78* / 0.005 / 1.78* / 0.0058 / 1.87*
Financial services (2) / 0.001 / 0.41 / 0.0009 / 0.38 / 0.0016 / 0.61
Wholesale, hotels. restaurants & transport (2) / 0.0032 / 1.57 / 0.003 / 1.52 / 0.0034 / 1.59
Other services (2) / 0.0006 / 0.24 / 0.0007 / 0.33 / 0.0014 / 0.55
Hours of work / -0.0009 / -5.04*** / -0.0009 / -5.13*** / -0.0009 / -5.07***
Hours of work (squared) / 7.08E-06 / 4.44*** / 6.79E-06 / 4.53*** / 7.32E-06 / 4.58***
Previous experience
Previous experience as self-employed / -0.001 / -0.77 / -0.001 / -0.76 / -0.0015 / -1.13
Previous experience as paid-employed / -0.0032 / -2.72*** / -0.0024 / -2.07** / -0.0033 / -2.86***
Previous experience as inactive / 0.0048 / 2.51** / 0.0059 / 3.01*** / 0.0044 / 2.35**
Previous labour market situation
Entering self-employment from unemployment / -8.41E-05 / -0.05 / -0.0038 / -2.27** / 0.0009 / 0.5
Incomes
Dwelling owner / -0.0009 / -0.73 / -0.0006 / -0.53 / -0.0015 / -1.2
Receiving capital and property incomes (1 lag) / 0.0005 / 0.51 / 0.0006 / 0.57 / 0.0010 / 0.93
Self-employment incomes (1 lag) ('000) / -1.27E-04 / -2.13** / -1.17E-04 / -2.05** / -1.02E-04 / -1.75*
Duration dependence
Ln (Duration as self-employed) / -0.0055 / -7.35*** / -0.0047 / -6.7*** / -0.0055 / -7.18***
Labour market institutions
Start-up incentives as 0/000 of GDP / -7.99E-05 / -0.25 / -0.0004 / -1.2
Effect of Start-up incentives
when entering self-employment from unemployment / -1.02E-04 / -0.18 / -0.0004 / -0.58
Employment incentives as 0/000 of GDP / -0.0006 / -4.96***
Effect of Employment incentives
when entering self-employment from unemployment / 0.0004 / 2.77***
Unemployment benefits index (0-6) / 0.0012 / 0.72 / 0.0025 / 1.57
Overall EPL index (0-6) / -0.0165 / -5.77***
Overall EPL index (squared) / 0.0032 / 5.1***
Statutory tax rates on dividend income (%) / 0.0004 / 4.13*** / 0.0003 / 3.55***
Business cycle
National unemployment rate (%) / 0.0005 / 3.74*** / 0.0004 / 3.43*** / 0.0007 / 4.85***
Aggregated environment
Services sector share (%) / 0.0003 / 5.31*** / 1.31E-04 / 2.76***
Rule of law (0-6) / 0.0084 / 5.75*** / 0.0047 / 3.1***
Reference categories: (1) No education or primary education, (2) Construction sector
Notes: *** denotes significance at the 1% level; ** denotes significance at the 5% level; * denotes significance at the 10% level.