We assess the relevance of formal education for the productivity of the self-employed and distinguish between opportunity entrepreneurs, who voluntarily pursue a business opportunity, and necessity entrepreneurs, who lack alternative employment options. We expect differences in the returns to...

Germany experienced a unique rise in the level of self-employment in the first two decades following unification. Applying the non-linear Blinder-Oaxaca decomposition technique, we find that the main factors driving these changes in the overall level of self-employment are demographic...

We provide, for the first time, comparative evidence of the impact of various types of extreme events - natural disasters, terrorism, and violent conflicts - on the perceptions of entrepreneurs concerning some key entrepreneurial issues - such as fear of failure in starting a business venture,...

A personal bankruptcy law that allows for a "fresh start" after bankruptcy reduces the individual risk involved in entrepreneurial activity. On the other hand, as risk shifts to creditors who recover less of their credit after a debtor's bankruptcy, lenders may charge higher interest rates or...

Based on representative micro data for Germany, we compare the incomes of self-employed with those of wage workers. Our results show that the median self-employed entrepreneur with employees earns significantly more than the median salaried employee, while the median solo entrepreneur earns...

This paper investigates the relationship between linguistic polarization and conflict in the Basque Country. During the 40 years of Franco's dictatorship the use of the Basque language was banned. Therefore, there may be some linguistic roots underlying the conflict in the Basque Country. We...

bilateral trade flows between more than 200 countries over the period from 1960 to 1993. Applying an augmented gravity model that includes several measures of terrorism and largescale violence, we find compelling evidence that terrorist actions reduce the volume of trade; a doubling in the number...

This paper analyses public policy choices in the security economy from an economic perspective. It discusses the role of public goods for national and global security and identifies the importance of the first- and second-order indirect effects of insecurity on economic activity, which include...

Both crime and terrorism impose costs onto society through the channels of fear and worry. Identifying and targeting groups which are especially affected by worries might be one way to reduce the total costs of these two types of insecurity. However, compared to the drivers of the fear of crime,...

This paper models conflictual interaction between a European state and a domestic dissident immigrant minority group, Muslims say, some of whom may resort to acts of terrorism. Here, identity is crucial and provides the micro-foundations of dissident behaviour by solving the collective action...