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Self-Employment Matching: An Analysis of Dual Earner Couples and Working Households

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  • Sarah Brown

    ()

  • Lisa Farrel
  • John Sessions

Abstract

This paper explores the significance of intra-couple and intra-household influences on self-employment. It may be the case that employment type matching is prevalent whereby individuals within a couple or household are characterised by similar types of employment. Alternatively, an individual may pool income risk with his/her partner by holding a diversified portfolio of employment types within the household thereby introducing an element of intra-household risk pooling. Such an arrangement may be particularly appropriate if one member of the couple is self-employed. We utilise ordered probit and random effects ordered probit analysis to explore the prevalence of employment matching and/or risk pooling within couples or households. Our empirical analysis which is based on cross-section data drawn from the British Family Expenditure Surveys 1996 to 2000 provides evidence of employment type matching both within dual earner couples and, to a lesser extent, in the wider context of working household members. Copyright Springer 2006

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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 26 (2006)
Issue (Month): 2 (03)
Pages: 155-172

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Handle: RePEc:kap:sbusec:v:26:y:2006:i:2:p:155-172

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: Dual Earner Couples; Performance Related Pay; Random Effects Ordered Probit Model; Self-employment; J20; J23; J24; J12;

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References

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  1. Peter Dawkins & Paul Gregg & Rosanna Scutella, 2002. "The Growth of Jobless Households in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(2), pages 133-154.
  2. Blanchflower, D. & Oswald, A., 1990. "What Makes A Young Entrepreneur?," Papers 373, London School of Economics - Centre for Labour Economics.
  3. Edward P. Lazear, 2002. "Entrepreneurship," NBER Working Papers 9109, National Bureau of Economic Research, Inc.
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Cited by:
  1. Hyytinen, Ari & Rouvinen, Petri, 2008. "The Labour Market Consequences of Self-employment Spells: European Evidence," Discussion Papers 1129, The Research Institute of the Finnish Economy.
  2. Frank M. Fossen, 2007. "Risky Earnings, Taxation and Entrepreneurial Choice: A Microeconometric Model for Germany," Discussion Papers of DIW Berlin 705, DIW Berlin, German Institute for Economic Research.
  3. Hannu Tervo & Hannu Niittykangas, 2011. "Self-employment transitions at older ages in different local labor markets," ERSA conference papers ersa11p764, European Regional Science Association.
  4. Thomas Leoni & Martin Falk, 2010. "Gender and field of study as determinants of self-employment," Small Business Economics, Springer, vol. 34(2), pages 167-185, February.
  5. 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.
  6. Simoes, Nadia & Moreira, Sandrina B. & Crespo, Nuno, 2013. "Individual Determinants of Self-Employment Entry – What Do We Really Know?," MPRA Paper 48403, University Library of Munich, Germany.
  7. Frank Fossen & Viktor Steiner, 2009. "Income taxes and entrepreneurial choice: empirical evidence from two German natural experiments," Empirical Economics, Springer, vol. 36(3), pages 487-513, June.
  8. Lina Andersson & Mats Hammarstedt, 2010. "Self-employment matching: an analysis of dual-earner couples in Sweden," Economics Bulletin, AccessEcon, vol. 30(3), pages 2197-2209.

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