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Modelling the Incidence of Self-Employment: Individual and Employment Type Heterogeneity

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Author Info
Sarah Brown ()
Lisa Farrell
Mark N Harris (Department of Economics, The University of Sheffield)

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Abstract

Modelling the incidence of self-employment has traditionally proved problematic. Whilst the individual supply side characteristics of the self-employed are well documented, we argue that the literature has largely neglected demand-side aspects. We explore the determinants of self-employment using individual level data drawn from the U.S. Survey of Consumer Finances (SCF). We present results from an econometric framework, the Parameterised Dogit model, that allows us to separately, and simultaneously, model individual heterogeneity (i.e. supply side) and employment type heterogeneity (i.e. demand-side) influences that determine self-employment. Our findings suggest that whilst individual characteristics are important determinants of self-employment, there are also factors which are specific to the type of employment that influence whether an individual is self-employed.

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File URL: http://www.shef.ac.uk/content/1/c6/08/83/11/SERP2008010.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2008010.

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Length: 25 pages
Date of creation: Sep 2008
Date of revision: Sep 2008
Handle: RePEc:shf:wpaper:2008010

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Related research
Keywords: Discrete Choice Models; Dogit Models; Self-Employment.;

Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General

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This page was last updated on 2009-11-1.


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