Table 5.
Nonlinear decomposition of entry rate into self-employment
| Total self-employment | Unincorp. self-employment | Incorp. self-employment | ||||
|---|---|---|---|---|---|---|
| GR versus before | GR vs. after | GR vs. before | GR vs. after | GR vs. before | GR vs. after | |
| Overall difference in entrepreneurial entry rates (in percentage points) | ||||||
| Great Rec. | 0.612∗∗∗ | 0.612∗∗∗ | 0.485∗∗∗ | 0.485∗∗∗ | 0.127∗∗∗ | 0.127∗∗∗ |
| (0.0106) | (0.0106) | (0.00941) | (0.00941) | (0.00485) | (0.00485) | |
| Comp. period | 0.541∗∗∗ | 0.568∗∗∗ | 0.430∗∗∗ | 0.439∗∗∗ | 0.112∗∗∗ | 0.129∗∗∗ |
| (0.00997) | (0.0104) | (0.00888) | (0.00916) | (0.00455) | (0.00499) | |
| Difference | 0.0708∗∗∗ | 0.0442∗∗∗ | 0.0552∗∗∗ | 0.0461∗∗∗ | 0.0156∗∗ | − 0.00184 |
| (0.0145) | (0.0148) | (0.0129) | (0.0131) | (0.00665) | (0.00696) | |
| Explained | 0.0678∗∗∗ | 0.0124∗∗∗ | 0.0599∗∗∗ | 0.0139∗∗∗ | 0.00754∗∗∗ | − 0.00137∗∗ |
| (0.00232) | (0.00167) | (0.00213) | (0.00149) | (0.000801) | (0.000590) | |
| Unexplained | 0.00300 | 0.0318∗∗ | − 0.00469 | 0.0322∗∗ | 0.00808 | − 0.000469 |
| (0.0139) | (0.0147) | (0.0123) | (0.0130) | (0.00649) | (0.00701) | |
| Difference explained by individual characteristics | ||||||
| Unemployed | 0.0647∗∗∗ | 0.0427∗∗∗ | 0.0580∗∗∗ | 0.0290∗∗∗ | 0.00644∗∗∗ | 0.00154∗∗∗ |
| (0.00227) | (0.00922) | (0.00212) | (0.00351) | (0.000723) | (0.000245) | |
| Non-particip. | − 0.000137 | − 0.0299∗∗∗ | − 0.000119 | − 0.0197∗∗∗ | − 0.0000177 | − 0.00140∗∗∗ |
| (0.00133) | (0.00790) | (0.00116) | (0.00331) | (0.000172) | (0.000317) | |
| Male | 0.00151∗∗ | − 0.00368∗∗ | 0.00118∗∗ | − 0.00202∗∗∗ | 0.000274∗∗ | − 0.000286∗∗∗ |
| (0.000707) | (0.00147) | (0.000554) | (0.000676) | (0.000131) | (0.000105) | |
| Education | 0.000637∗∗∗ | − 0.00753∗∗∗ | − 0.000188 | 0.000439 | 0.000770∗∗∗ | − 0.00213∗∗∗ |
| (0.000241) | (0.00278) | (0.000186) | (0.00113) | (0.000147) | (0.000460) | |
| Race | − 0.000335 | 0.00625∗∗∗ | − 0.000303 | 0.00435∗∗∗ | − 0.0000353 | 0.000216∗∗ |
| (0.000221) | (0.00157) | (0.000202) | (0.000821) | (0.0000350) | (0.000109) | |
| Married | − 0.000275∗ | 0.00164 | 0.0000230 | − 0.00156 | − 0.000229∗∗∗ | 0.000955∗∗∗ |
| (0.000156) | (0.00143) | (0.000134) | (0.00117) | (0.0000726) | (0.000246) | |
| No. children | 0.0000188 | − 0.0000189 | 0.0000370 | − 0.0000913 | − 0.00000583 | 0.00000963 |
| (0.0000607) | (0.000284) | (0.0000597) | (0.000202) | (0.0000193) | (0.0000334) | |
| Metropolitan | − 0.0000833 | 0.00291∗∗∗ | − 0.000107 | 0.00309∗∗∗ | 0.0000172 | − 0.000294∗∗ |
| (0.000120) | (0.000997) | (0.000152) | (0.000666) | (0.0000253) | (0.000123) | |
| Age | 0.00277∗∗∗ | 0.00514∗∗∗ | 0.00216∗∗∗ | 0.00322∗∗∗ | 0.000508∗∗∗ | 0.000375∗∗ |
| (0.000723) | (0.00179) | (0.000589) | (0.00117) | (0.000170) | (0.000182) | |
| Region | − 0.000987∗∗∗ | − 0.00509∗∗∗ | − 0.000771∗∗∗ | − 0.00290∗∗∗ | − 0.000181∗∗∗ | − 0.000358∗∗∗ |
| (0.000278) | (0.00160) | (0.000241) | (0.000791) | (0.0000657) | (0.000120) | |
| N | 1,079,986 | 1,059,872 | 1,079,986 | 1,059,872 | 1,079,986 | 1,059,872 |
| N: GR | 541,517 | 541,517 | 541,517 | 541,517 | 541,517 | 541,517 |
| N: Comp. per. | 538,469 | 518,355 | 538,469 | 518,355 | 538,469 | 518,355 |
Nonlinear Oaxaca decomposition of the monthly entry rate into self-employment based on logit estimations. The columns show separate decompositions of the difference in the entry rate during the Great Recession and a comparison period before or after the Great Recession. Separate decompositions for entry into all, unincorporated and incorporated self-employment are shown. The lower panel shows the difference between the entry rates in the two periods explained by each of the variables. The period before the GR is 04/2007–03/2008, during the GR 09/2008–08/2009, and after the GR 05/2013–04/2014. All figures are in percentage points. Robust standard errors in parentheses. ∗, ∗∗, ∗∗∗Significant at the 10%/5%/1% levels
Source: Own calculations based on the Current Population Survey 2007–2014