IDEAS home Printed from https://ideas.repec.org/a/sae/woemps/v37y2023i5p1395-1418.html

Is Rising Self-Employment Associated with Material Deprivation in the UK?

Author

Listed:
  • Andrew Henley

Abstract

Rising self-employment may indicate growing precarity. This article investigates poverty in self-employment in the UK using a large-scale official household survey for 2010 to 2019 through a focus on material deprivation. The principal finding is that, after controlling for the selective nature of self-employment, self-employed households may experience higher levels of material deprivation than employed ones. This is particularly so for those without children and access to welfare and other support that children may bring. This finding is consistent with previous research on the reliability of self-employment earnings data. It also may highlight the impact of precarious self-employment on low earning households. This is apparent in detailed analysis of earnings and material deprivation gaps at different points of the distribution, where self-employed households rely more on the income of one self-employed earner.

Suggested Citation

  • Andrew Henley, 2023. "Is Rising Self-Employment Associated with Material Deprivation in the UK?," Work, Employment & Society, British Sociological Association, vol. 37(5), pages 1395-1418, October.
  • Handle: RePEc:sae:woemps:v:37:y:2023:i:5:p:1395-1418
    DOI: 10.1177/09500170221092640
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09500170221092640
    Download Restriction: no

    File URL: https://libkey.io/10.1177/09500170221092640?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Croson, David C. & Minniti, Maria, 2012. "Slipping the surly bonds: The value of autonomy in self-employment," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 355-365.
    2. Sergio Firpo, 2007. "Efficient Semiparametric Estimation of Quantile Treatment Effects," Econometrica, Econometric Society, vol. 75(1), pages 259-276, January.
    3. Panayiota Lyssiotou & Panos Pashardes & Thanasis Stengos, 2004. "Estimates of the black economy based on consumer demand approaches," Economic Journal, Royal Economic Society, vol. 114(497), pages 622-640, July.
    4. Chris Smith, 2006. "The double indeterminacy of labour power," Work, Employment & Society, British Sociological Association, vol. 20(2), pages 389-402, June.
    5. Concepción Román & Emilio Congregado & José Millán, 2011. "Dependent self-employment as a way to evade employment protection legislation," Small Business Economics, Springer, vol. 37(3), pages 363-392, October.
    6. Åstebro, Thomas & Chen, Jing, 2014. "The entrepreneurial earnings puzzle: Mismeasurement or real?," Journal of Business Venturing, Elsevier, vol. 29(1), pages 88-105.
    7. Brian Nolan & Christopher T. Whelan, 2010. "Using non-monetary deprivation indicators to analyze poverty and social exclusion: Lessons from Europe?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 305-325.
    8. Magnus Henrekson & Tino Sanandaji, 2011. "Entrepreneurship and the theory of taxation," Small Business Economics, Springer, vol. 37(2), pages 167-185, September.
    9. Saridakis, George & Marlow, Susan & Storey, David J., 2014. "Do different factors explain male and female self-employment rates?," Journal of Business Venturing, Elsevier, vol. 29(3), pages 345-362.
    10. Markus Frolich & Blaise Melly, 2010. "Estimation of quantile treatment effects with Stata," Stata Journal, StataCorp LLC, vol. 10(3), pages 423-457, September.
    11. Lawrence F. Katz & Alan B. Krueger, 2019. "The Rise and Nature of Alternative Work Arrangements in the United States, 1995–2015," ILR Review, Cornell University, ILR School, vol. 72(2), pages 382-416, March.
    12. Sarah Wall, 2015. "Dimensions of Precariousness in an Emerging Sector of Self-Employment: A Study of Self-Employed Nurses," Gender, Work and Organization, Wiley Blackwell, vol. 22(3), pages 221-236, May.
    13. Danson, Mike & Galloway, Laura & Sherif, Mohamed, 2021. "From unemployment to self-employment: Can enterprise policy intensify the risks of poverty?," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 75(C).
    14. Pissarides, Christopher A. & Weber, Guglielmo, 1989. "An expenditure-based estimate of Britain's black economy," Journal of Public Economics, Elsevier, vol. 39(1), pages 17-32, June.
    15. Atkinson, Tony & Cantillon, Bea & Marlier, Eric & Nolan, Brian, 2002. "Social Indicators: The EU and Social Inclusion," OUP Catalogue, Oxford University Press, number 9780199253494.
    16. 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.
    17. Ewart Keep & Ken Mayhew, 2010. "Moving beyond skills as a social and economic panacea," Work, Employment & Society, British Sociological Association, vol. 24(3), pages 565-577, September.
    18. 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.
    19. Colin C. Williams & Ioana Alexandra Horodnic, 2018. "Evaluating the prevalence and distribution of dependent self†employment: some lessons from the European Working Conditions Survey," Industrial Relations Journal, Wiley Blackwell, vol. 49(2), pages 109-127, March.
    20. Carlianne Patrick & Heather Stephens & Amanda Weinstein, 2016. "Where are all the self-employed women? Push and pull factors influencing female labor market decisions," Small Business Economics, Springer, vol. 46(3), pages 365-390, March.
    21. Colin C Williams & Sara Nadin, 2012. "Work beyond employment: representations of informal economic activities," Work, Employment & Society, British Sociological Association, vol. 26(2), pages 1-10, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Catherine Farrell & John Hassard & Jonathan Morris, 2026. "Organizational restructuring, precarious employment and work intensification: Women managers’ experience of work under neoliberalism," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 47(1), pages 119-149, February.
    2. Mattia Vacchiano & Vera Bel & Eric Widmer, 2025. "Being Your Own Boss: Network Determinants of Young People’s Orientations Towards Self-Employment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 176(1), pages 195-217, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Skrzek-Lubasińska, Małgorzata & Szaban, Jolanta M., 2019. "Nomenclature and harmonised criteria for the self-employment categorisation. An approach pursuant to a systematic review of the literature," European Management Journal, Elsevier, vol. 37(3), pages 376-386.
    2. Pilar García Perea & Concepción Román, 2019. "Characterisation of self-employment in Spain from a European perspective," Economic Bulletin, Banco de España, issue JUN.
    3. 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.
    4. Monica Fisher & Paul A. Lewin, 2018. "Push and pull factors and Hispanic self-employment in the USA," Small Business Economics, Springer, vol. 51(4), pages 1055-1070, December.
    5. Daly, Moira, 2015. "The long term returns of attempting self-employment with regular employment as a fall back option," Labour Economics, Elsevier, vol. 35(C), pages 26-52.
    6. Horemans, Jeroen & Marx, Ive, 2017. "Poverty and Material Deprivation among the Self-Employed in Europe: An Exploration of a Relatively Uncharted Landscape," IZA Discussion Papers 11007, IZA Network @ LISER.
    7. Per Engström & Johannes Hagen & Edvard Johansson, 2023. "Estimating tax noncompliance among the self-employed—evidence from pleasure boat registers," Small Business Economics, Springer, vol. 61(4), pages 1747-1771, December.
    8. Tal Feder & Joanna Woronkowicz, 2023. "Reluctantly independent: motivations for self-employed artistic work," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 47(4), pages 589-607, December.
    9. George Saridakis & Anne-Marie Mohammed & Jesús M. García-Iglesias & Rebeca I. Muñoz Torres, 2018. "Economy and Divorces: Their Impact Over Time on the Self-Employment Rates in Spain," Journal of Family and Economic Issues, Springer, vol. 39(3), pages 422-435, September.
    10. Thomas Åstebro, 2017. "The private financial gains to entrepreneurship: Is it a good use of public money to encourage individuals to become entrepreneurs?," Small Business Economics, Springer, vol. 48(2), pages 323-329, February.
    11. Ilari Ilmakunnas & Lauri Mäkinen, 2021. "Age Differences in Material Deprivation in Finland: How do Consensus and Prevalence-Based Weighting Approaches Change the Picture?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(2), pages 393-412, April.
    12. Knut R. Wangen, 2005. "An Expenditure Based Estimate of Britain's Black Economy Revisited," Discussion Papers 414, Statistics Norway, Research Department.
    13. Marco Caliendo & Alexander S. Kritikos & Claudia Stier, 2023. "The influence of start-up motivation on entrepreneurial performance," Small Business Economics, Springer, vol. 61(3), pages 869-889, October.
    14. Torregrosa-Hetland, Sara, 2016. "Sticky Income Inequality In The Spanish Transition (1973-1990)," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 34(1), pages 39-80, March.
    15. Mathias Silva, 2023. "Parametric models of income distributions integrating misreporting and non-response mechanisms," AMSE Working Papers 2311, Aix-Marseille School of Economics, France.
    16. Andrew Burke & Serhiy Lyalkov & Ana Millán & José María Millán & André Stel, 2021. "How do country R&D change the allocation of self-employment across different types?," Small Business Economics, Springer, vol. 56(2), pages 695-721, February.
    17. Kunwon Ahn & John V. Winters, 2023. "Does education enhance entrepreneurship?," Small Business Economics, Springer, vol. 61(2), pages 717-743, August.
    18. Adena, Maja & Myck, Michal & Oczkowska, Monika, 2015. "Material deprivation items in SHARE Wave 5 data: a contribution to a better understanding of differences in material conditions in later life," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 44-49.
    19. Cabral, Ana Cinta G. & Gemmell, Norman, 2018. "Estimating Self-Employment Income-Gaps from Register and Survey Data: Evidence for New Zealand," Working Paper Series 20833, Victoria University of Wellington, Chair in Public Finance.
    20. Nicky Rogge & Emilia Konttinen, 2018. "Social Inclusion in the EU Since the Enlargement: Progress or Regress?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(2), pages 563-584, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:woemps:v:37:y:2023:i:5:p:1395-1418. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.britsoc.co.uk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.