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Modelling the Incidence of Self-Employment: Individual and Employment Type Heterogeneity

Author

Listed:
  • Sarah Brown

    ()

  • Lisa Farrell
  • Mark N Harris

    (Department of Economics, The University of Sheffield)

Abstract

Modelling the incidence of self-employment has traditionally proved problematic. Whilst the individual supply side characteristics of the self-employed are well documented, we argue that the literature has largely neglected demand-side aspects. We explore the determinants of self-employment using individual level data drawn from the U.S. Survey of Consumer Finances (SCF). We present results from an econometric framework, the Parameterised Dogit model, that allows us to separately, and simultaneously, model individual heterogeneity (i.e. supply side) and employment type heterogeneity (i.e. demand-side) influences that determine self-employment. Our findings suggest that whilst individual characteristics are important determinants of self-employment, there are also factors which are specific to the type of employment that influence whether an individual is self-employed.

Suggested Citation

  • Sarah Brown & Lisa Farrell & Mark N Harris, 2008. "Modelling the Incidence of Self-Employment: Individual and Employment Type Heterogeneity," Working Papers 2008010, The University of Sheffield, Department of Economics, revised Sep 2008.
  • Handle: RePEc:shf:wpaper:2008010
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    File URL: http://www.shef.ac.uk/content/1/c6/08/83/11/SERP2008010.pdf
    File Function: First version, 2008
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    Cited by:

    1. 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.
    2. Bögenhold, Dieter & Fachinger, Uwe, 2010. "How Diverse is Entrepreneurship? Observations on the social heterogeneity of self-employment in Germany," MPRA Paper 23271, University Library of Munich, Germany.

    More about this item

    Keywords

    Discrete Choice Models; Dogit Models; Self-Employment.;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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