In addition, self-employment rates tend to be high in countries where the public sector is small, taxation levels are high, product market regulation (PMR) is tight3 and the rule of law is weakly enforced (OECD, 1999, Schuetze, 2000, Torrini, 2005). Temporary employment tends to be higher in countries with stricter employment protection legislation for regular workers (OECD, 2014, Chen et al., One explanation put forward is that the employment protection of permanent jobs has a minor impact on total employment, but leads to a stronger substitution of temporary jobs for permanent jobs (Cahuc et al.,