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Self-Employment Matching: An Analysis of Dual Earner Couples and Working Households

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  • Sarah Brown
  • Lisa Farrel
  • John Sessions

Abstract

This paper explores the significance of intra-couple and intra-household influences on self-employment. It may be the case that employment type matching is prevalent whereby individuals within a couple or household are characterised by similar types of employment. Alternatively, an individual may pool income risk with his/her partner by holding a diversified portfolio of employment types within the household thereby introducing an element of intra-household risk pooling. Such an arrangement may be particularly appropriate if one member of the couple is self-employed. We utilise ordered probit and random effects ordered probit analysis to explore the prevalence of employment matching and/or risk pooling within couples or households. Our empirical analysis which is based on cross-section data drawn from the British Family Expenditure Surveys 1996 to 2000 provides evidence of employment type matching both within dual earner couples and, to a lesser extent, in the wider context of working household members. Copyright Springer 2006

Suggested Citation

  • Sarah Brown & Lisa Farrel & John Sessions, 2006. "Self-Employment Matching: An Analysis of Dual Earner Couples and Working Households," Small Business Economics, Springer, vol. 26(2), pages 155-172, March.
    • Handle: RePEc:kap:sbusec:v:26:y:2006:i:2:p:155-172
    DOI: 10.1007/s11187-004-6489-5
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    References listed on IDEAS

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    1. Blanchflower, D. & Oswald, A., 1990. "What Makes A Young Entrepreneur?," Papers 373, London School of Economics - Centre for Labour Economics.
    2. Edward P. Lazear, 2005. "Entrepreneurship," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 649-680, October.
    3. Peter Dawkins & Paul Gregg & Rosanna Scutella, 2002. "The Growth of Jobless Households in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(2), pages 133-154, June.
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    Citations

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    Cited by:

    1. Frank M. Fossen, 2007. "Risky Earnings, Taxation and Entrepreneurial Choice: A Microeconometric Model for Germany," SOEPpapers on Multidisciplinary Panel Data Research 29, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Frank Fossen & Viktor Steiner, 2009. "Income taxes and entrepreneurial choice: empirical evidence from two German natural experiments," Empirical Economics, Springer, vol. 36(3), pages 487-513, June.
    3. Sarah Brown & Lisa Farrell & Mark N. Harris & John G. Sessions, 2006. "Risk preference and employment contract type," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(4), pages 849-863, October.
    4. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    5. Frank M. Fossen, 2012. "Gender differences in entrepreneurial choice and risk aversion -- a decomposition based on a microeconometric model," Applied Economics, Taylor & Francis Journals, vol. 44(14), pages 1795-1812, May.
    6. Kaiser, Ulrich & Kuhn, Johan Moritz, 2019. "Who Founds? An Analysis of University and Corporate Startup Entrepreneurs Based on Danish Register Data," IZA Discussion Papers 12191, Institute of Labor Economics (IZA).
    7. Berkay Özcan, 2011. "Only the lonely? The influence of the spouse on the transition to self-employment," Small Business Economics, Springer, vol. 37(4), pages 465-492, November.
    8. KOUL NGWE MANGUELLE Maximilien, 2024. "Does the Accumulating Human Capital Determine the Decision to Work as Self-employed? Evidence from Cameroon," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 5769-5793, June.
    9. Thomas Leoni & Martin Falk, 2010. "Gender and field of study as determinants of self-employment," Small Business Economics, Springer, vol. 34(2), pages 167-185, February.
    10. Katherina Kuschel, 2019. "Women Founders in the Technology Industry: The Startup-Relatedness of the Decision to Become a Mother," Administrative Sciences, MDPI, vol. 9(2), pages 1-17, April.
    11. Mrożewski Matthias, 2014. "An Empirical Analysis of Economic and Socio-Demographic Determinants of Entrepreneurship Across German Regions," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 42(1), pages 60-80, June.
    12. Hyytinen, Ari & Rouvinen, Petri, 2008. "The labour market consequences of self-employment spells: European evidence," Labour Economics, Elsevier, vol. 15(2), pages 246-271, April.
    13. Hannu Tervo & Hannu Niittykangas, 2011. "Self-employment transitions at older ages in different local labor markets," ERSA conference papers ersa11p764, European Regional Science Association.
    14. Lina Andersson & Mats Hammarstedt, 2010. "Self-employment matching: an analysis of dual-earner couples in Sweden," Economics Bulletin, AccessEcon, vol. 30(3), pages 2197-2209.
    15. Katherina Kuschel, 2015. "Female founders in the technology industry: The startup-relatedness of the decision to become a mother," Serie Working Papers 25, Universidad del Desarrollo, School of Business and Economics.

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    More about this item

    Keywords

    Dual Earner Couples; Performance Related Pay; Random Effects Ordered Probit Model; Self-employment; J20; J23; J24; J12;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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