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The evolution of false self-employment in the British construction industry: a neo-Polanyian account of labour market formation

Author

Listed:
  • Felix Behling

    (Maynooth University, Ireland)

  • Mark Harvey

    (University of Essex, UK)

Abstract

Governments in Europe and elsewhere have renewed their attention to the fiscal regulation of their economies in order to close tax loopholes and boost revenues in response to the financial crisis. The article uses a neo-Polanyian ‘instituted economic process’ approach to explore and explain the uniquely high level of bogus self-employment in the UK construction industry, facilitated by confused law and stimulated by a bespoke construction fiscal regime, resulting in endemic tax evasion. It examines how the co-evolution of employment status law and a sector-specific fiscal regime maps tightly onto the emergence of mass self-employment, as evidenced by comparative labour market and sectoral statistics. Seeing competition as an instituted process within these distinctive market arrangements, it identifies a form of ‘degenerative competition’, driving out both genuine direct-employment and self-employment, and driving in bogus self-employment, with its attendant substantial fiscal losses, failed skill reproduction and poor productivity.

Suggested Citation

  • Felix Behling & Mark Harvey, 2015. "The evolution of false self-employment in the British construction industry: a neo-Polanyian account of labour market formation," Work, Employment & Society, British Sociological Association, vol. 29(6), pages 969-988, December.
    • Handle: RePEc:sae:woemps:v:29:y:2015:i:6:p:969-988
    DOI: 10.1177/0950017014559960
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    References listed on IDEAS

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    Cited by:

    1. Clark, Ken & Drinkwater, Stephen & Robinson, Catherine, 2015. "Self?Employment amongst Migrant Groups in England and Wales: New Evidence from Census Microdata," IZA Discussion Papers 9539, Institute of Labor Economics (IZA).
    2. Ken Clark & Stephen Drinkwater & Catherine Robinson, 2017. "Self-employment amongst migrant groups: new evidence from England and Wales," Small Business Economics, Springer, vol. 48(4), pages 1047-1069, April.
    3. Virginia Navajas-Romero & Rosalía Díaz-Carrión & Antonio Ariza-Montes, 2019. "Decent Work as Determinant of Work Engagement on Dependent Self-Employed," Sustainability, MDPI, vol. 11(9), pages 1-17, April.
    4. Lasierra, Jose Manuel, 2018. "Self-Employment and the Economic Cycle in Spain," MPRA Paper 89593, University Library of Munich, Germany.
    5. Ocaña-Riola, Ricardo & Martín-Olmedo, Piedad & Maroto-Navarro, Gracia & García-Calvente, María Del Mar & Mayoral-Cortés, José María & Ruiz-Fernández, Josefa & Sánchez-Cruz, José Juan, 2017. "Impact of the Great Recession in the Social Welfare Indicators Related to the Labour Market in Andalusia /Impacto de la Gran Recesión en los indicadores de bienestar social relacionados con el mercado," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 245-262, Enero.

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