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Self-employment of the young and the old: exploring effects of the crisis in Croatia (CROSBI ID 634973)

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Botrić, Valerija ; Tomić, Iva Self-employment of the young and the old: exploring effects of the crisis in Croatia // 2nd Workshop on (Youth) Unemployment in Europe Varšava, Poljska, 05.05.2016-06.05.2016

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Botrić, Valerija ; Tomić, Iva

engleski

Self-employment of the young and the old: exploring effects of the crisis in Croatia

The economic and financial crisis that erupted in Europe in 2008 hit some groups of the population harder than the others. Young population was among those that experienced the largest increase in unemployment, whereas many of those belonging to the older working-age group, after experiencing a loss of their jobs, were also unable to return to employment. Hence, one of the options for both of these groups was to seek self-employment solutions. This paper focuses precisely on transitions into self- employment of these two end-groups among the working age population in a country that experienced one of the longest and largest setbacks during the recent recession – Croatia. The main goal is to establish differences in transition to self-employment of the young and the old pre and during the crisis by distinguishing between two types of transitions: (i) out of unemployment or ‘necessity self-employment’ and (ii) out of employment or ‘opportunity self-employment’. Main results suggest that necessity self- employment is dominant for both groups, and especially so for the old, whereas opportunity self-employment is slightly more pronounced in the case of the young population. However, both the necessity and the opportunity self- employment have decreased in the crisis period. Decomposition analyses – Fairlie and Blinder- Oaxaca – indicate that the gap between the old and the young has increased in the case of necessity self-employment while it decreased for the opportunity self-employment between the two observed periods. Further examination of the characteristics between youth unemployed that became self-employed of employed during the crisis reveals that the only common characteristics that increase both the probability of self-employment as well as the probability of employment are the share of the working adults and the share of the children within a household. Further research is needed in order to provide specific policy recommendations.

transitions ; self-employment ; young ; old ; decomposition ; crisis ; Croatia

Presenter: Valerija Botrić The paper is part of the project ZAMAH - The Impact of the Recession on the Structure and Flow of Youth Unemployment in Croatia (HR.3.2.01-0136) that has been funded with support from the European Social Fund (ESF).

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2nd Workshop on (Youth) Unemployment in Europe

predavanje

05.05.2016-06.05.2016

Varšava, Poljska

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