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Intergenerational correlation of self-employment in European countries

Velilla, Jorge (2020): Intergenerational correlation of self-employment in European countries.

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Abstract

We analyze the existence of a long-run intergenerational correlation of self-employment in Europe, providing cross-country comparative evidence. Using the 2011 special module on Intergenerational Transmission of the European Union Statistics on Income and Living Conditions (EU-SILC), we analyze the correlations between the current self-employment status of respondents, and that of their parents when respondents were 14 years old, in nine European countries. After controlling for both individual and macroeconomic observable factors, our estimates show that the intergenerational correlation of self-employment is strong between men and their fathers, while it is not robust for females. Furthermore, working in the same occupation as parents appears to be a strong channel of intergenerational correlation of self-employment.

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