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Study on Entering Self-Employment of Young Workers  

Shin, Jaeyoul (School of Global Studies and Collaboration, Aoyamagakuin University)
Kim, Jongsung (Graduate School of Global Entrepreneurship, Kookmin University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.15, no.1, 2020 , pp. 247-257 More about this Journal
Abstract
In recent years, the proportion of youth's self-employed is steadily increasing, and government policy also actively encourages youth to become an entrepreneur. However, most of the domestic precedent studies on the self-employed labor market focus on the middle-aged and the elderly, and previous studies on the self-employed labor market of young people are hardly ever studied. Above all, the study that examines the factors of entry into self-employment of young people is not sufficient and researchers usually utilize the study about for all ages to explain the self-employment market of young people. However, because the young and middle-aged people differ in labor market conditions, family backgrounds, and the level of accumulation of human capital, separate explanations and theories are needed. Therefore, this study explored the factors of entry into self-employment by separating the age group from 15~29 years old. The data used in the analysis was the 9th to 20th data of the Korea Labor Panel Survey. The youth unemployment rate and employment rate were referred to the Economically Active Population Survey of Statistics Korea. The analysis subject was limited to young people who are currently performing economic activities, and the analysis method used multi-level logit model. The main results are summarized as follows. First, the lower the unemployment rate and the higher the employment rate, the younger people tend to enter their own businesses on the structural level. Second on the individual level, young people who possess enough financial capital or pursuit personal aptitude or interest tend to enter self-employment. However, there are no statistical effects of human capital and entrepreneur capital.
Keywords
self-employment; self-employment of young workers; push hypothesis; pull hypothesis; entrepreneurship; risk-taking;
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Times Cited By KSCI : 2  (Citation Analysis)
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