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Ruhr Economic Papers #1023


Myrielle Gonschor, Ronald Bachmann, Santo Milasi, Alessio Mitra

Technological Progress and the Dynamics of Self-Employment: Worker-level Evidence for Europe

We examine how technology is associated with self-employment dynamics using worker-level data from 31 European countries. We find that while employees exposed to labour-augmenting technologies are more likely to move from paid-employment to solo self-employment and viceversa, employees exposed to labour-saving technologies are less likely to become self-employed. We identify important differences with respect to workers’ socio-demographic characteristics. The results suggest that while labour-augmenting technologies promote workers’ mobility and reduce unemployment risks for high-skilled workers, they have the opposite effect for low-skilled workers. Furthermore, labour-saving technologies worsen labour market outcomes particularlyfor low-skilled and routine workers.

ISBN: 978-3-96973-189-5

JEL-Klassifikation: J62, J63, J31

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