Labour market and self-employment: the Israeli case
Keywords:
Labour market, Self-employment, EntrepreneurshipAbstract
The aim of this paper is to present and analyze the labour market from the perspective of self-employment. It investigates the phenomenon of this form of employment from several aspects: on the one hand, it examines the factors influencing the choice of Israelis to be self-employed among Arabs and Jews in Israel, and, on the other hand, it examines the extent to which human capital and family background characteristics determine the employment choice. The main aim of the paper is to characterize the phenomenon of self-employment in the labour market. By using 2008 data Israel Census, hypotheses concerning the effect of demographical variables on self-employment are formulated and tested, using logistic regression. The results support the research hypotheses, and the most notable predictors of self-employment are discussed. Thus, we conclude that family background, gender, age, number of children and an interaction between nationality and occupation are the most significant predictors of self-employment. Many factors affect the self-employment status of citizens of Israel, with the single strongest predictor being gender – males in Israel are more likely to be self-employed. Also, more urbanized areas such as Tel-Aviv and the Centre, have higher self-employment rate than less populated areas such as the South.
References
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Arum, R., Budig, M., & Grant, D. (2000). Labor market regulation and the growth of self-employment. International Journal of Sociology, 30(4),3-27.
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Luber, S., Lohmann, H., Müller, W., & Barbieri, P. (2000). Male self-employment in four European countries: The relevance of education and experience across industries. International Journal of Sociology, 30(3), 5-44.
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Minola, T., Criaco, G., & Obschonka, M. (2016). Age, culture, and self-employment motivation. Small Business Economics, 46(2), 187-213.
Özcan, B. (2011). Only the lonely? The influence of the spouse on the transition to self-employment. Small Business Economics, 37(4), 465.
Parker, S. C. (2009). The Economics of Entrepreneurship. Cambridge: Cambridge University Press.
Portes, A., & Jensen, L. (1989). The enclave and the entrants: Patterns of ethnic enterprise in Miami before and after Mariel. American Sociological Review, 929-949.
Renzulli, L., H. Aldrich, & J. Moody. (2000). Family matters: gender, networks, and entrepreneurial outcomes. Social Forces, 79, 523-46.
Robb, A. M., & Fairlie, R. W. (2007). Access to financial capital among US businesses: The case of African American firms. The Annals of the American Academy of Political and Social Science, 613(1), 47-72.
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Taniguchi, H. (2002). Determinants of women's entry into self-employment. Social Science Quarterly, 83(3), 875-893.
Valdez, Z. (2012). Self-employment as an indicator of segmented assimilation among six ethnic minority groups. Entrepreneurship Research Journal, 2(4).
Waldinger, R. D., Aldrich, H., & Ward, R. (1990). Ethnic entrepreneurs: Immigrant business in industrial societies (Vol. 1). Sage Publications, Inc.
Walker, E., & Webster, B. (2004). Gender issues in home-based businesses. Women in Management Review, 19(8), 404-412.
World Bank (2007). Informality: Exit and Exclusion. Washington: World Bank. Retrieved from http://documents.worldbank.org/curated/en/326611468163756420/pdf/400080Informal101OFFICIAL0USE0ONLY1.pdf
Ardagna, S., & Lusardi, A. (2008). Explaining international differences in entrepreneurship: The role of individual characteristics and regulatory constraints. Working Paper 14012. Cambridge, Mass: National Bureau of Economic Research. Available at https://www.nber.org/papers/w14012.pdf
Aronson, R. L. (1991). Self-employment: A labor market perspective. Ithaca, NY: ILR Press.
Arum, R. (1997). Trends in male and female self-employment: growth in a new middle class or increasing marginalization of the labor force? Research in Social Stratification and Mobility, 15, 209-238.
Arum, R., Budig, M., & Grant, D. (2000). Labor market regulation and the growth of self-employment. International Journal of Sociology, 30(4),3-27.
Arum, R., & Müller., W. (2004). The reemergence of self-employment: Comparative findings and empirical propositions. Pp. 426-454 in Arum, R. and W. Müller (eds.), The Reemergence of Self-Employment: A Comparative Study of Self-Employment Dynamics and Social Inequality. Princeton University Press.
Blanchflower, D. G. (2009). Minority self-employment in the United States and the impact of affirmative action programs. Annals of Finance, 5(3-4), 361.
Boden, R. J. (1999). Flexible working hours, family responsibility, and female self-employment: Gender differences in self-employment selection. American Journal of Economics and Sociology, 58, 71-84.
Borjas, G. J. (1986). The self-employment experience of immigrants. Working Paper 1942. Cambridge, Mass: National Bureau of Economic Research. Available at https://www.nber.org/papers/w1942.pdf
Budig, M. (2006). Intersections on the road to self-employment: Gender, family and occupational class. Social Forces, 84, 2223-2239.
Carr, D. (1996). Two paths to self-employment? Women and men’s self-employment in the United States, 1980. Work and Occupation, 23, 25-53.
Clark, K., & Drinkwater, S. (2010). Recent trends in minority ethnic entrepreneurship in Britain. International Small Business Journal, 28(2), 136-146.
Coate, S., & Tennyson, S. (1992). Labor market discrimination, imperfect information and self employment. Oxford Economic Papers, 44(2), 272-288.
Constant, A., & Zimmermann, K. F. (2006). The making of entrepreneurs in Germany: Are native men and immigrants alike? Small business economics, 26(3), 279-300.
Fairlie, R. W. (2007). Entrepreneurship among disadvantaged groups: Women, minorities and the less educated. Pp. 437-75 in Simon Parker (ed.), The Life Cycle of Entrepreneurial Ventures. International Handbook Series on Entrepreneurship Vol. 3.
Fairlie, R. W., & Meyer, B. D. (2003). The effect of immigration on native self-employment. Journal of Labor Economics, 21(3), 619-650.
Freytag, A., & R. Thurik. (2010b). Entrepreneurship and its determinants in a cross country setting. Pp. 157-70 in their (eds.), Entrepreneurship and Culture. Berlin: Springer-Verlag.
Georgellis, Y., & Wall, H. J. (2005). Gender differences in self‐employment. International review of applied economics, 19(3), 321-342.
Heim, B. T. (2015). Understanding the decline in self-employment among individuals nearing retirement. Small Business Economics, 45(3), 561-580.
Hout, M., & H. Rosen. (2000). Self-employment, family background, and race. Journal of Human Resources 35(4), 670-92.
Kangasharju, A., & Pekkala, S. (2002). The role of education in self–employment success in Finland. Growth and change, 33(2), 216-237.
Kraus, V. (2003). On self-employed women in Israel, 1970-2000. Presented at ISA RC 28 meeting committee on stratification and social mobility, New York August 22-25.
Le, A. T. (1999). Empirical studies of self‐employment. Journal of Economic surveys, 13(4), 381-416.
Levy, R. (2018). Israeli start-up: fewer companies open, more companies fail - but jobs grow. The Marker, 22 May 2018 http://www.themarker.com (Hebrew).
Lohmann, H. (2001). Self-employed or employee, full-time or part-time? Gender differences in the determinants and conditions for self-employment in Europe and the US. Working papers Nr.38. MZES - Mannheimer Zentrum für europäische Sozialforschung. Retrieved from http://www.mzes.uni-mannheim.de/publications/wp/wp-38.pdf
Lombard, K. V. (2001). Female self-employment and demand for flexible, nonstandard work schedules. Economic Inquiry 39 (2), 214-237.
Li, P. S. (2001). Immigrants' propensity to self‐employment: evidence from Canada. International Migration Review, 35(4), 1106-1128.
Luber, S., Lohmann, H., Müller, W., & Barbieri, P. (2000). Male self-employment in four European countries: The relevance of education and experience across industries. International Journal of Sociology, 30(3), 5-44.
McManus, P. A. (2001). Women's participation in self-employment in western industrialized nations. International Journal of Sociology, 31 (2), 70-97.
Minola, T., Criaco, G., & Obschonka, M. (2016). Age, culture, and self-employment motivation. Small Business Economics, 46(2), 187-213.
Özcan, B. (2011). Only the lonely? The influence of the spouse on the transition to self-employment. Small Business Economics, 37(4), 465.
Parker, S. C. (2009). The Economics of Entrepreneurship. Cambridge: Cambridge University Press.
Portes, A., & Jensen, L. (1989). The enclave and the entrants: Patterns of ethnic enterprise in Miami before and after Mariel. American Sociological Review, 929-949.
Renzulli, L., H. Aldrich, & J. Moody. (2000). Family matters: gender, networks, and entrepreneurial outcomes. Social Forces, 79, 523-46.
Robb, A. M., & Fairlie, R. W. (2007). Access to financial capital among US businesses: The case of African American firms. The Annals of the American Academy of Political and Social Science, 613(1), 47-72.
Shahor, T. (2014). Why is there a higher rate of self-employed people in the minority sectors than in the majority sector: Study case in Israel 2011. European Journal of Social Science Education and Research, 1(1), 18-23.
Swirski, Sh., & Ophir, A. (November 2014). Self-Employed in Israel, Adva Center - Information on Equality and Social Justice in Israel, Jerusalem (Hebrew).
Taniguchi, H. (2002). Determinants of women's entry into self-employment. Social Science Quarterly, 83(3), 875-893.
Valdez, Z. (2012). Self-employment as an indicator of segmented assimilation among six ethnic minority groups. Entrepreneurship Research Journal, 2(4).
Waldinger, R. D., Aldrich, H., & Ward, R. (1990). Ethnic entrepreneurs: Immigrant business in industrial societies (Vol. 1). Sage Publications, Inc.
Walker, E., & Webster, B. (2004). Gender issues in home-based businesses. Women in Management Review, 19(8), 404-412.
World Bank (2007). Informality: Exit and Exclusion. Washington: World Bank. Retrieved from http://documents.worldbank.org/curated/en/326611468163756420/pdf/400080Informal101OFFICIAL0USE0ONLY1.pdf
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2019-12-30
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Labour market and self-employment: the Israeli case. (2019). Timisoara Journal of Economics and Business, 12(2), 87-108. https://www.tjeb.ro/index.php/tjeb/article/view/319
