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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)

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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Bibliographic 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.;

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Cited by:
  1. Bögenhold, Dieter & Fachinger, Uwe, 2010. "How Diverse is Entrepreneurship? Observations on the social heterogeneity of self-employment in Germany," MPRA Paper 23271, University Library of Munich, Germany.
  2. 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.

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