Dutch self-employment between 1980 and 1997

Data from two retrospective life course surveys, the Family Survey Dutch Population 1992 and 1998, are used to investigate the determinants of entry into and exit out of self-employment in the Netherlands. First, explanations for trends in self-employment in the Netherlands are offered, and the literature on self-employment entry and exit decisions is reviewed. The data, which are based on surveys of 3,777 potential entrepreneurs between the ages of 21 and 64, are presented and analyzed. According to the data, the general shift from an industrial economy to a service economy is reflected in Dutch self-employment rates. Between 1985 and 1997, self-employment rose considerably among unskilled as well as professional/managerial people. No relation between class of previous job and class of self-employment exists. Intergenerational mobility is also an issue for the self-employed -- self-employment is most likely to occur in the same class to which the father belongs. While entry into self-employment is determined by the characteristics of the self-employed individual, exit from self-employment is caused by factors related to the firm and the macroeconomic environment. The data offer no means of distinguishing voluntary exits from forced exits