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

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  • Sarah Brown

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  • 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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    File URL: http://hdl.handle.net/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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Hannu Tervo & Hannu Niittykangas, 2011. "Self-employment transitions at older ages in different local labor markets," ERSA conference papers ersa11p764, European Regional Science Association.
    2. Frank M. Fossen, 2007. "Risky Earnings, Taxation and Entrepreneurial Choice: A Microeconometric Model for Germany," Discussion Papers of DIW Berlin 705, DIW Berlin, German Institute for Economic Research.
    3. 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.
    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. 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.
    6. 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.
    7. 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.
    8. Mrożewski Matthias, 2014. "An Empirical Analysis of Economic and Socio-Demographic Determinants of Entrepreneurship Across German Regions," International Journal of Management and Economics, De Gruyter Open, vol. 42(1), pages 60-80, June.
    9. 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.
    10. repec:dsr:wpaper:25 is not listed on IDEAS

    More about this item

    Keywords

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

    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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