Analyzing the changing education distributions of solo self-employed workers and employer entrepreneurs in Europe

Using macro-level data for 32 European countries, the present paper explores developments in the education distributions among solo self-employed workers and employer entrepreneurs in the non-agricultural economy over the period 1997–2014. Our dynamic analysis reveals that over this period, the number of solo self-employed workers, but particularly the high-educated solo self-employed, has increased considerably in Europe. This trend is even more pronounced for female solo self-employment. The education distribution of the solo self-employed is thus shifting quickly towards higher levels of education. Moreover, our static analysis based on 2014 reveals that, for the higher-developed countries within Europe (Western Europe including Scandinavia), solo self-employed and employer entrepreneurs are on average equally highly educated. We also find that the solo self-employed in Western Europe are considerably higher educated than their counterparts in the rest of Europe. In general, our results underline the rapidly increasing importance of, particularly high-educated, solo self-employed workers in modern, highly developed economies.