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The goal of this Ph D project is to investigate and understand the joint impact of unemployment and health on self-employment entry, performance and exit.The thesis will build upon prior research in our group that investigates the link between self-employment and unemployment and between self-employment and health.This theory assumes individuals act rationally (rationality assumption) and only become self-employed if the utility (net of opportunity costs) they expect to derive from self-employment exceeds that from wage employment.Individuals not only derive utility from earnings but also from non-monetary aspects.Hence, it is important to understand determinants of entry and performance in self-employment.is a major concern both for labor force participants and for policy makers.is vital for labor market outcomes such as occupational choice, earnings and exit.
is an important and growing labor market category accounting for approximately 16% of the labor force in the Europe (Eurostat, 2015).There is a health barrier for entry into self-employment since healthy individuals are, for example, more likely to recognize promising start-up opportunities and have greater confidence in their skills to run a business successfully which enhances their likelihood to become self-employed.Health may be a particular concern for the unemployed (e.g., health can be a factor that contributed to their unemployment status) which makes it important to investigate the relation between unemployment and health and how this affects self-employment entry, performance and exit. Important questions to address are: How do different aspects of health (e.g., physical and mental health) affect self-employment entry and performance of the unemployment?Relevant questions to consider in this research are: Although the pressure to become self-employed may be stronger for the unemployed relative to wage workers, there is no clear encompassing view yet regarding the types of the unemployed, e.g., in terms of health characteristics, who are especially likely to actually become self-employed nor on the impact of prior unemployment status and health on performance and exit in self-employment.This study makes several important contributions to the literature.
Regarding , this research will make use of the occupational choice framework to understand its link with unemployment and health.