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

  • Sarah Brown

    ()

  • Lisa Farrell
  • Mark N Harris

    (Department of Economics, The University of Sheffield)

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.

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Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2008010.

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Length: 25 pages
Date of creation: Sep 2008
Date of revision: Sep 2008
Handle: RePEc:shf:wpaper:2008010
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