IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp1963.html
   My bibliography  Save this paper

Dependent Forms of Self-employment in the UK: Identifying Workers on the Border between Employment and Self-employment

Author

Listed:
  • Böheim, René

    () (University of Linz)

  • Muehlberger, Ulrike

    () (Vienna University of Economics and Business)

Abstract

We analyse the characteristics of workers who provide work on the basis of a civil or commercial contract, but who are dependent on or integrated into the firm for which they work. We argue that these dependent self-employed lose their rights under labour law, receive less favourable benefits from social security protection and are often beyond trade union representation and collective bargaining. Using data from the British Labour Force Survey we test two hypotheses: (1) Dependent self-employed workers are significantly different from both employees and (independent) self-employed individuals, thus forming a distinct group. (2) Dependent self-employed workers have lower labour market skills, less labour market attachment and, thus, less autonomy than self-employed workers. The data support our hypothesis that dependent self-employed workers are a distinct labour market group which differs from both employees and independent self-employed individuals. Men, older workers, those with low education and a low job tenure have greater odds of working in dependent self-employment than their counterparts. Our results suggest that dependent forms of self-employment are used by firms to increase labour flexibility.

Suggested Citation

  • Böheim, René & Muehlberger, Ulrike, 2006. "Dependent Forms of Self-employment in the UK: Identifying Workers on the Border between Employment and Self-employment," IZA Discussion Papers 1963, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1963
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp1963.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Judith Freedman & Emma Chamberlain, 1997. "Horizontal equity and the taxation of employed and self-employed workers," Fiscal Studies, Institute for Fiscal Studies, vol. 18(1), pages 87-118, February.
    2. Cowling, Marc & Taylor, Mark, 2001. "Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, vol. 16(3), pages 167-175, May.
    3. Fabio Berton & Lia Pacelli & Giovanna Segre, 2003. "Tra lavoro dipendente e lavoro parasubordinato: chi sono, da dove vengono e dove vanno i lavoratori parasubordinati," LABORatorio R. Revelli Working Papers Series 25, LABORatorio R. Revelli, Centre for Employment Studies.
    4. Taylor, Mark P, 1999. "Survival of the Fittest? An Analysis of Self-Employment Duration in Britain," Economic Journal, Royal Economic Society, vol. 109(454), pages 140-155, March.
    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. Simon C. Parker, 2010. "Contracting Out, Public Policy And Entrepreneurship," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(2), pages 119-144, May.
    2. Schulze Buschoff, Karin, 2007. "Self-employment and social risk management: Comparing Germany and the United Kingdom," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-103, Social Science Research Center Berlin (WZB).
    3. Schulze Buschoff, Karin & Schmidt, Claudia, 2007. "Adapting labour law and social security to the needs of the new self-employed: Comparing European countries and initiatives at EU level," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-113, Social Science Research Center Berlin (WZB).
    4. Ulrike Muehlberger & Silvia Pasqua, 2006. "The “Continuous Collaborators” in Italy. Hybrids between Employment and Self-employment?," CHILD Working Papers wp10_06, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    5. Sierdjan Koster & Nardo de Vries, 2011. "The networks of the solo self-employed and their success," Scales Research Reports H201111, EIM Business and Policy Research.
    6. repec:eur:ejserj:247 is not listed on IDEAS

    More about this item

    Keywords

    outsourcing; self-employment; dependency;

    JEL classification:

    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iza:izadps:dp1963. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak). General contact details of provider: http://www.iza.org .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.