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Male/female earnings differences in self-employment: The effects of marriage, children, and the household division of labor

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  • Greg Hundley
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    Abstract

    Data from the National Longitudinal Study of the High School Class of 1972 and the Panel Study of Income Dynamics are used to investigate reasons for the gender earnings gap among the self-employed. Compared to organizational employment, self-employment may allow workers freer adjustment of work effort in response to changing needs for market work income and household production. Consistent with that hypothesis, the analysis shows that self-employed women's earnings declined with marriage, family size, and hours of housework, whereas self-employed men's earnings increased with marriage and family size. Organizationally employed workers' earnings exhibited a similar but less pronounced pattern, suggesting that in the self-employment sector the structure of female/male relative earnings was more sensitive to family size and composition. Self-employed women and men specialized more intensively in housework and market work, respectively. Women apparently tended to choose self-employment to facilitate household production, and men to achieve higher earnings. (Author's abstract.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 54 (2000)
    Issue (Month): 1 (October)
    Pages: 95-114

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    Handle: RePEc:ilr:articl:v:54:y:2000:i:1:p:95-114

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    Cited by:
    1. Anna Matysiak & Monika Mynarska, 2013. "Women’s self-employment in Poland: A strategy for combining work and childcare?," Working Papers 68, Institute of Statistics and Demography, Warsaw School of Economics.
    2. Fairlie, Robert W & Robb, Alicia M., 2005. "Why Are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital," Santa Cruz Department of Economics, Working Paper Series qt5gk2188g, Department of Economics, UC Santa Cruz.
    3. Bender, Keith A. & Roche, Kristen, 2013. "Educational mismatch and self-employment," Economics of Education Review, Elsevier, vol. 34(C), pages 85-95.
    4. Leung, Danny, 2006. "The male/female earnings gap and female self-employment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(5), pages 759-779, October.
    5. Kunze, Astrid, 2014. "Are all of the good men fathers? The effect of having children on earnings," Discussion Paper Series in Economics 11/2014, Department of Economics, Norwegian School of Economics.
    6. Kunze, Astrid, 2014. "Are All of the Good Men Fathers? The Effect of Having Children on Earnings," IZA Discussion Papers 8113, Institute for the Study of Labor (IZA).
    7. Robert W. Fairlie & Alicia Robb, 2004. "Families, Human Capital, and Small Business: Evidence from the Characteristics of Business Owners Survey," Yale School of Management Working Papers ysm435, Yale School of Management.
    8. Maria Floro & Ranjula Bali Swain, 2010. "Food Security, Gender and Occupational Choice among Urban Low-Income Households," Working Papers 2010-06, American University, Department of Economics.
    9. Hiroyuki Okamuro & Kenta Ikeuchi, 2012. "Work-Life Balance and Gender Differences in Self-Employment Income during the Start-up Stage in Japan," Global COE Hi-Stat Discussion Paper Series gd12-260, Institute of Economic Research, Hitotsubashi University.
    10. Lofstrom, Magnus & Bates, Timothy & Parker, Simon C., 2014. "Why are some people more likely to become small-businesses owners than others: Entrepreneurship entry and industry-specific barriers," Journal of Business Venturing, Elsevier, vol. 29(2), pages 232-251.
    11. Wellington, Alison J., 2006. "Self-employment: the new solution for balancing family and career?," Labour Economics, Elsevier, vol. 13(3), pages 357-386, June.
    12. Marit Rønsen, 2012. "The family – a barrier or motivation for female entrepreneurship?," Discussion Papers 727, Research Department of Statistics Norway.
    13. Theodore Lianos & Anastasia Pseiridis, 2009. "On the occupational choices of return migrants," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(2), pages 155-181, March.
    14. Berkay Özcan, 2011. "Only the lonely? The influence of the spouse on the transition to self-employment," Small Business Economics, Springer, vol. 37(4), pages 465-492, November.
    15. Ahn, Taehyun, 2010. "Attitudes toward risk and self-employment of young workers," Labour Economics, Elsevier, vol. 17(2), pages 434-442, April.

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