The Importance of Determinants of Transition from Unemployment to Self-Employment: Evidence from Slovak Micro-Data

Abstract

The study empirically analyses the determinants of self-employment from unemployment in Slovakia in the period of economic boom. The previous employment of individuals before support is proving to be an important factor in the transition to self-employment. We believe that the importance lies in gaining a practical basis from past jobs, market orientation or establishing contacts before starting a business. Practical courses and support in the form of a tax loan would contribute to the creation of value-added business ideas that have a better chance on the labour market (because after support there is entrepreneurship only in less capital-intensive industries). The paper examines short-term and long-term perspectives using decision trees and random forests, which are exceptionally used in the study of public support. At the same time, research is enriched with practical perspectives, which significantly increases the information base of research.