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

  • Sarah Brown

    ()

  • Lisa Farrel
  • John Sessions

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

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File URL: http://hdl.handle.net/10.1007/s11187-004-6489-5
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Article provided by Springer in its journal Small Business Economics.

Volume (Year): 26 (2006)
Issue (Month): 2 (03)
Pages: 155-172

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Handle: RePEc:kap:sbusec:v:26:y:2006:i:2:p:155-172
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100338

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  1. Edward P. Lazear, 2005. "Entrepreneurship," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 649-680, October.
  2. Peter Dawkins & Paul Gregg & Rosanna Scutella, 2001. "The Growth of Jobless Households in Australia," Melbourne Institute Working Paper Series wp2001n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Blanchflower, David G. & Oswald, Andrew J., 2007. "What Makes a Young Entrepreneur?," IZA Discussion Papers 3139, Institute for the Study of Labor (IZA).
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