This doctoral dissertation, submitted to the University of Mannheim, was
written during my employment as a research fellow at the Zentrum fiir
Europaische Wirtschaftsforschung (ZEW - Centre for European Economic
Research) in Mann- heim. My work profited very much from the fruitful
environment provided by the ZEW and particularly by the Department of
Labour Markets, Human Resources and Social Policy. I am very grateful to
my advisor, Professor Wolfgang Franz, for his support and inspiration. I
am also indebted to Friedhelm Pfeiffer for encouraging me to work on the
topicoftransition from unemployment to self-employment. Also, Part IIIof
this study gained very much from the joint work with FriedheIm Pfeiffer.
Fur- thermore, I am much obliged to Professor JosefBniderl for
evaluating this disser- tation. I would like to thank the "Forderverein
Wissenschaft und Praxis am Zentrum fiir Europaische Wirtschaftsforschung
e.V." for financial support of part of this study. My work also
benefited from the comments and the help of numerous people other than
those mentioned above. Knowing that the list of acknowledgement is
incomplete, I would like to thank Professor Francois Laisney and
Matthias Almus for their valuable comments on the selection models,
Professor William Greene for his helpful remarks on the bivariate probit
model, Professor John Ham and an anonymous referee for their very
valuable comments on preliminary work of this study, and Joachim Keller,
Jens Kohlberger and Yibo Ren for providing excellent research
assistance. Obviously, all remaining errors are my own responsibility.