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Explaining international variations in self-employment : evidence from a panel of OECD countries.

Parker, S. C. and Robson, M. T. (2004) 'Explaining international variations in self-employment : evidence from a panel of OECD countries.', Southern economic journal., 71 (2). pp. 287-301.


Organisation for Economic Cooperation and Development (OECD) data from 1972 to 1996 reveals substantial differences in the levels and trends of self-employment rates across countries. This article uses recently developed panel integration and cointegration techniques to explore the determinants of aggregate self-employment rates. We find that within the panel, self-employment rates are positively and significantly related to personal income tax rates and negatively and significantly related to the unemployment benefit replacement rate. This accords a central role to government tax and transfer policies, in contrast to nonrobust influences from macroeconomic variables, which have been widely used in previous studies.

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Record Created:29 Aug 2008
Last Modified:18 Aug 2011 16:41

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