Self-employment in the Covid-19 crisis: a CEP Covid-19 analysis

We report results from the LSE-CEP Survey of UK Self-employment May 2020.1 The self-employed have been hit particularly hard by the Covid-19 crisis, with approximately three quarters reporting less work in April 2020 than usual. The largest reductions in self-employment hours and income are among lower-income, older individuals without employees. There are no gender differences in the aggregate, however this is due to self-employed women being more likely to be able to work from home. Comparing men who can work from home against women who can work from home, women are more negatively affected than men. A third of self-employed workers have felt that their health was at risk while working during the coronavirus crisis, and this was significantly higher among those who work in app-based jobs. On average, higher-income workers are more likely to apply for the Coronavirus Self-employment Income Support Scheme. Over 40% of those who had not applied are unsure whether they are eligible. On average, the self-employed expect their work to return to normal in September 2020. A fifth think it will take until 2021 and 1 in 20 expect that their work will never return back to normal. The self-employed value income support highly. On average they are prepared to sacrifice 10% of their regular income to be guaranteed similar support for future shocks. Solo self-employed individuals value income support by twice as much as the self-employed with employees.