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Gender differences in self-employment

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Author Info
Yannis Georgellis
Howard J. Wall

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Abstract

This paper examines the factors that influence transitions into self-employment, paying particular attention to gender differences. We find that: (i) men are more responsive to the wage differential between wage/salaried employment and self-employment; (ii) liquidity constraints are more important for men; and (iii) the link between father’s self-employment status and the probability of self-employment is stronger for men. Taken together, these results suggest that, for women, self-employment is a closer substitute for part-time work and labour market inactivity than it is for men. We attribute such differences to the different labour market opportunities and occupational strategies of women.

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Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 1999-008.

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Date of creation: 2004
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Publication status: Published in International Review of Applied Economics, July 2005, 19(3), pp. 321-42
Handle: RePEc:fip:fedlwp:1999-008

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Keywords: Employment (Economic theory) ; Labor market ; Germany;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Taylor, Mark P, 1996. "Earnings, Independence or Unemployment: Why Become Self-Employed?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(2), pages 253-66, May.
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  3. Holtz-Eakin, Douglas & Rosen, Harvey S & Weathers, Robert, 2000. " Horatio Alger Meets the Mobility Tables," Small Business Economics, Springer, vol. 14(4), pages 243-74, June. [Downloadable!] (restricted)
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  4. Donald Bruce & Douglas Holtz-Eakin & Joseph F. Quinn, 2000. "Self-Employment and Labor Market Transitions at Older Ages," Boston College Working Papers in Economics 490, Boston College Department of Economics. [Downloadable!]
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  5. Greg Hundley, 2001. "Why Women Earn Less Than Men in Self-Employment," Journal of Labor Research, Transaction Publishers, vol. 22(4), pages 817-829, October. [Downloadable!] (restricted)
  6. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September. [Downloadable!] (restricted)
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  7. Bruce, Donald, 1999. " Do Husbands Matter? Married Women Entering Self-Employment," Small Business Economics, Springer, vol. 13(4), pages 317-29, December. [Downloadable!] (restricted)
  8. Blanchflower, David G & Meyer, Bruce D, 1994. " A Longitudinal Analysis of the Young Self-Employed in Australia and the United States," Small Business Economics, Springer, vol. 6(1), pages 1-19, February.
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  10. Bruce, Donald, 2000. "Effects of the United States tax system on transitions into self-employment," Labour Economics, Elsevier, vol. 7(5), pages 545-574, September. [Downloadable!] (restricted)
  11. Taylor, Mark P, 1999. "Survival of the Fittest? An Analysis of Self-Employment Duration in Britain," Economic Journal, Royal Economic Society, vol. 109(454), pages C140-55, March. [Downloadable!] (restricted)
  12. Michael Hout & Harvey S. Rosen, 1999. "Self-Employment, Family Background, and Race," NBER Working Papers 7344, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  17. Riley, John G, 1979. "Testing the Educational Screening Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S227-52, October. [Downloadable!] (restricted)
  18. Macpherson, David A., 1988. "Self-employment and married women," Economics Letters, Elsevier, vol. 28(3), pages 281-284. [Downloadable!] (restricted)
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  21. Bruce D. Meyer, 1990. "Why Are There So Few Black Entrepreneurs?," NBER Working Papers 3537, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  22. Schiller, Bradley R & Crewson, Philip E, 1997. "Entrepreneurial Origins: A Longitudinal Inquiry," Economic Inquiry, Oxford University Press, vol. 35(3), pages 523-31, July.
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  24. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June. [Downloadable!] (restricted)
  25. Howard J. Wall & Yannis Georgellis, 1999. "What makes a region entrepreneurial? evidence from Britain," Working Papers 1999-009, Federal Reserve Bank of St. Louis. [Downloadable!]
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  26. Borjas, George J & Bronars, Stephen G, 1989. "Consumer Discrimination and Self-employment," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 581-605, June. [Downloadable!] (restricted)
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  27. Lindh, Thomas & Ohlsson, Henry, 1996. "Self-Employment and Windfall Gains: Evidence from the Swedish Lottery," Economic Journal, Royal Economic Society, vol. 106(439), pages 1515-26, November. [Downloadable!] (restricted)
  28. Lechner, Michael & Pfeiffer, Friedhelm, 1993. " Planning for Self-Employment at the Beginning of a Market Economy: Evidence from Individual Data of East German Workers," Small Business Economics, Springer, vol. 5(2), pages 111-28, June.
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  29. Fan, Wei & White, Michelle J, 2003. "Personal Bankruptcy and the Level of Entrepreneurial Activity," Journal of Law & Economics, University of Chicago Press, vol. 46(2), pages 543-67, October.
  30. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August. [Downloadable!] (restricted)
  31. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October. [Downloadable!] (restricted)
  32. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June. [Downloadable!] (restricted)
  33. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January. [Downloadable!] (restricted)
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  34. Yannis Georgellis & Howard J. Wall, 2000. "Who are the self-employed?," Review, Federal Reserve Bank of St. Louis, issue Dec, pages 15-24. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Pernilla Andersson & Eskil Wadensjö, 2006. "Employees Who Become Self-Employed: Do Labour Income and Wages Have an Impact?," IZA Discussion Papers 1971, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Philipp Koellinger & Maria Minniti & Christian Schade, 2008. "Seeing the World with Different Eyes," Tinbergen Institute Discussion Papers 08-035/3, Tinbergen Institute. [Downloadable!]
  3. David G. Blanchflower & Chris Shadforth, 2007. "Entrepreneurship in the UK," IZA Discussion Papers 2818, Institute for the Study of Labor (IZA). [Downloadable!]
  4. whitney Oliver Peake & Maria I. Marshall, 2006. "What Do We Really Know About Entrepreneurs? An Analysis Of Nascent Entrepreneurs In Indiana," Working Papers 06-14, Purdue University, College of Agriculture, Department of Agricultural Economics. [Downloadable!]
  5. Frank M. Fossen, 2007. "Risky Earnings, Taxation and Entrepreneurial Choice: A Microeconometric Model for Germany," SOEPpapers 29, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  6. Douglas Holtz-Eakin & Harvey Rosen, 2005. "Cash Constraints and Business Start-Ups: Deutschmarks Versus Dollars," Contributions to Economic Analysis & Policy, Berkeley Electronic Press, vol. 4(1), pages 1029-1029. [Downloadable!] (restricted)
  7. Andersson Joona, Pernilla & Wadensjö, Eskil, 2008. "A Gender Perspective on Self-Employment Entry and Performance as Self-Employed," IZA Discussion Papers 3581, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Wagner, Joachim, 2004. "What a Difference a Y Makes: Female and Male Nascent Entrepreneurs in Germany," IZA Discussion Papers 1134, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Constant, Amelie F., 2008. "Businesswomen in Germany and Their Performance by Ethnicity: It Pays to Be Self-Employed," IZA Discussion Papers 3644, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  10. Douglas Holtz-Eakin & Harvey Rosen, 1999. "Cash Constraints and Business Start-ups: Deutschmarks versus Dollars," Center for Policy Research Working Papers 11, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
  11. Howard J. Wall & Yannis Georgellis, 1999. "What makes a region entrepreneurial? evidence from Britain," Working Papers 1999-009, Federal Reserve Bank of St. Louis. [Downloadable!]
    Other versions:
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