Why less self-employment means more entrepreneurship

A brand new working paper published by Magnus Henrekson and Tino Sanandaji, IFN, is the subject of a blogpost written by James Pethokoukis on the American Entreprise Institute's website. The IFN-researchers argue that the overwhelming majority of self-employed individuals are not entrepreneurial in the Schumpeterian sense. "Europe has a higher self-employment rate than the United States and East Asia. At the same time, Europe has a lower entrepreneurship rate than competitive regions. Europe underperforms in entrepreneurship despite having advantages such as a skilled labour force, good infrastructure, large markets, and strong performance in technological innovation," Henrekson and Sanandaji assert.