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The Relative Earnings from Self and Paid Employment: A Time‐series Analysis for the UK

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  • Martin T. Robson

Abstract

We investigate the determinants of variations in the reported relative earnings of self‐employed and paid‐employed workers in the United Kingdom, focusing in particular on the significant decline which has taken place since 1980. We find that the main factors behind this decline have been the rise in the rate of self‐employment itself and a reduction in the level of capital per self‐employed worker; effects which we associate with a decline in the quality of the average self‐employed business. Changes in the tax rates on income and in the sectoral composition of GDP helped to reduce the scale of the decline in self‐employment relative earnings to some degree.

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  • Martin T. Robson, 1997. "The Relative Earnings from Self and Paid Employment: A Time‐series Analysis for the UK," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(5), pages 502-518, November.
    • Handle: RePEc:bla:scotjp:v:44:y:1997:i:5:p:502-518
    DOI: 10.1111/1467-9485.00072
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    Cited by:

    1. Åstebro, Thomas & Chen, Jing, 2014. "The entrepreneurial earnings puzzle: Mismeasurement or real?," Journal of Business Venturing, Elsevier, vol. 29(1), pages 88-105.
    2. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
    3. Trevor Jones & Monder Ram, 2007. "Re-embedding the ethnic business agenda," Work, Employment & Society, British Sociological Association, vol. 21(3), pages 439-457, September.
    4. Harding, John P. & Rosenthal, Stuart S., 2017. "Homeownership, housing capital gains and self-employment," Journal of Urban Economics, Elsevier, vol. 99(C), pages 120-135.
    5. Nils Braakmann, 2007. "Differences in the earnings distribution of self- and dependent emploxed German men - evidence from a quantile regression decomposition analysis," Working Paper Series in Economics 55, University of Lüneburg, Institute of Economics.

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