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The Inequality of Employment and Self-Employment Incomes: A Decomposition Analysis for the U.K

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  • Parker, Simon C

Abstract

U.K. employment and self-employment income inequality are analyzed over 1979-94/95. Robust inequality decompositions reveal occupation to be a relatively important and hitherto neglected determinant of earnings inequality. In contrast, self-employment income inequality is harder to explain, although occupation is also the most important single factor in the mid-1990s. The paper also provides a novel implementation of a decomposition of changes in S. C. Kolm's inequality index. Copyright 1999 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Parker, Simon C, 1999. "The Inequality of Employment and Self-Employment Incomes: A Decomposition Analysis for the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(2), pages 263-274, June.
  • Handle: RePEc:bla:revinw:v:45:y:1999:i:2:p:263-74
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    Cited by:

    1. Cecilia García-Peñalosa & Elsa Orgiazzi, 2013. "Factor Components of Inequality: A Cross-Country Study," Review of Income and Wealth, International Association for Research in Income and Wealth, pages 689-727.
    2. Pedro Albarran & Raquel Carrasco & Maite Martinez-Granado, 2009. "Inequality for Wage Earners and Self-Employed: Evidence from Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(4), pages 491-518, August.
    3. Cruces Guillermo & Makdissi Paul & Wodon Quentin T., 2004. "Poverty Measurement Under Risk Aversion Using Panel Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, pages 1-20.
    4. Alina Sorgner & Michael Fritsch & Alexander Kritikos, 2017. "Do entrepreneurs really earn less?," Small Business Economics, Springer, pages 251-272.
    5. Paul MAKDISSI & Quentin WODON & Guillermo Cruces, 2003. "Poverty Measurement Under Risk Aversion Using Panel Data," Cahiers de recherche 03-06, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    6. Thor Olav Thoresen, 2009. "Income Mobility of Owners of Small Businesses when Boundaries between Occupations are Vague," CESifo Working Paper Series 2633, CESifo Group Munich.
    7. Åstebro, Thomas & Chen, Jing, 2014. "The entrepreneurial earnings puzzle: Mismeasurement or real?," Journal of Business Venturing, Elsevier, pages 88-105.
    8. Des O'Dea, 2000. "The Changes in New Zealand's Income Distribution," Treasury Working Paper Series 00/13, New Zealand Treasury.
    9. Skriabikova, Olga J. & Dohmen, Thomas & Kriechel, Ben, 2014. "New evidence on the relationship between risk attitudes and self-employment," Labour Economics, Elsevier, pages 176-184.
    10. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
    11. Cecilia García-Peñalosa & Richard Breen & Elsa Orgiazzi, 2008. "Factor Components of Inequality: Cross-Country Differences and Time Changes," LIS Working papers 503, LIS Cross-National Data Center in Luxembourg.
    12. Anu Tokila & Hannu Tervo, 2011. "Regional differences in returns to education for entrepreneurs versus wage earners," The Annals of Regional Science, Springer;Western Regional Science Association, pages 689-710.

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