IDEAS home Printed from https://ideas.repec.org/a/wly/iecrev/v66y2025i2p661-686.html
   My bibliography  Save this article

Self‐Employment And Labor Market Risks

Author

Listed:
  • Richard Audoly

Abstract

I study the labor market risks associated with self‐employment. I document that the self‐employed are subject to larger earnings fluctuations than employees and frequently transition into unemployment. I analyze the provision of benefits targeted at these risks using a calibrated search model with (i) precautionary savings, (ii) work opportunities in paid‐ and self‐employment, and (iii) skill heterogeneity. Extending the U.S. unemployment insurance scheme to the self‐employed increases the transition rate from self‐employment to unemployment and yields an unequal benefits to contributions ratio across skill groups. At the calibrated parameters, the self‐employed in the middle of the skill distribution lose welfare.

Suggested Citation

  • Richard Audoly, 2025. "Self‐Employment And Labor Market Risks," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 66(2), pages 661-686, May.
    • Handle: RePEc:wly:iecrev:v:66:y:2025:i:2:p:661-686
    DOI: 10.1111/iere.12732
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/iere.12732
    Download Restriction: no
    File URL: https://libkey.io/10.1111/iere.12732?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
    ---><---

    More about this item

    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:wly:iecrev:v:66:y:2025:i:2:p:661-686. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    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.