Determinants of Self-Employment Preference and Realization of Women and Men in Europe and the United States

Provided by: EIM Business & Policy Research
Topic: Start-Ups
Format: PDF
Female self-employment rates are consistently lower than those of men. This untapped female potential has drawn the attention of policy makers. In the present paper the determinants of self-employment rates of both men and women are investigated in the context of a two-equation model explaining both actual self-employment and the preference for self-employment. A systematic distinction is made between different ways in which gender can exert influence on (preference for) self-employment, including moderation, mediation and direct effects. Using Flash Eurobarometer data of about 8,000 individuals from 29 countries (including the 15 old EU member states, 10 new EU member states and the United States) probit equations are estimated explaining the (preference for) self-employment.

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