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The chapter examines the relationship between the size and diversity of the expellee population and entrepreneurship and occupational change in West Germany. Using statistical data at the municipal and county levels, it documents a reversal of fortune: although expellee presence presented economic challenges in the immediate postwar period, in the long run, it increased entrepreneurship rates, education, and household incomes. The more regionally diverse the expellee population, the better the long-run economic performance in receiving communities.
Understanding gender disparities in home-based self-employment (HBS) and their links to homeownership and socioeconomic factors is crucial for advancing sustainable development goals (SDGs) in Sub-Saharan Africa, especially Nigeria. This study uses data from the 2010/2011, 2012/13, 2015/16, and 2018/19 waves of the Nigerian General Household Survey (GHS). It employs random effect probit regression, the LASSO method for identifying predictors, and the Blinder–Oaxaca decomposition technique to analyse gender differences in nonlinear binary outcomes. The results show that female business owners are more likely to engage in HBS compared to males, highlighting the importance of gender equality (SDG 5) and decent work (SDG 8). While male entrepreneurs are mainly driven by profit, females prioritise balancing paid and unpaid work, reflecting motivations beyond profit within heterodox economics. Significant gender-differentiated impacts are observed in relation to monthly rent, post-secondary education, dwelling space, energy, and regional locations. Notably, the presence of children significantly increases female involvement in HBS, a trend not seen among males. Marriage also influences female participation, suggesting that marital circumstances and economic benefits play a role. These findings highlight the need for policies addressing gender-specific constraints, challenging traditional gender roles, and promoting inclusive human development within the SDG framework.
This study aims to examine the impact of the Hukou system, a labour mobility-restricting institution, on the decision to engage in non-agricultural self-employment in China, reflecting the dynamic process of labour transition from contractual work to self-employment within the country’s evolving labour market. By using the China Family Panel Studies (CFPS) dataset, the results show that urban migrants, who own rural Hukou but migrate to large cities, are more likely to turn to self-employment than local citizens conditional on individual characteristics. Taking advantage of the 2014 Hukou reform, we provide supporting evidence that Hukou discrimination is a key factor in explaining the higher self-employment rate among representative urban migrants. Further heterogeneous analysis suggests that low-income migrants experience greater constraints imposed by the Hukou system, while high-income level migrants are more likely to turn to self-employment voluntarily.
The chapter explores the experience of late career self-employment. We adopt an intersectional perspective to theorise the precarity experienced by older self-employed women and provide insights into the societal and organizational structures and norms that shape ageing in employment and everyday life. We illustrate our arguments through three biographical cases of older self-employed women in the United Kingdom. Finally, we discuss the implications of age, gender, and self-employment and conclude with a call for inclusive policy to tackle precarity in self-employment.
Previous literature suggests that the gig economy and platform work pose challenges to social policy, including the welfare entitlement issues caused by workers’ ambiguous occupational status. Focusing on the government’s regulatory role, this study investigates platform workers’ occupational welfare (OW) by conducting in-depth interviews with forty-six food delivery workers in Hong Kong. The evidence reveals workers’ occupational risks resulting from platforms’ algorithmic devices and the misclassification of independent contractors. The denied access to private occupational pensions was considered acceptable by workers because of the perceived irrelevance of OW. While interviewees emphasised time-based flexibility as a key intangible benefit, the shifting business costs to self-employed workers was highlighted as a disadvantage. A policy dilemma appears between strengthening state regulation/protection and maintaining workers’ temporal autonomy. Arguably, the platformisation of work is translated into the gigification of OW, disentitling platform workers’ employer-provided welfare and labour protection. Platforms possess monopolising power over workers, the state displays weak regulatory power to monitor platforms, and workers’ occupational citizenship is undermined by the government’s minimal intervention. This study contributes to the literature by linking OW to platform work and revealing how the gig economy reshapes social policy, empirically offering a worker-centred analysis of OW in Hong Kong.
During the height of its power over everyday life, between 1968 and 1993, the Cuban Communist Party outlawed virtually all non-state labour and exchange. Since then, however, its continuity in power has increasingly depended on devolution: shifting responsibility for the provision of basic goods and services from failing state enterprises back to the self-employed. The latter now produce the majority of food and basic products; receive most of the national income from tourism, remittances and foreign investment; and generate most new jobs. Nevertheless, they subsist under a subaltern regime of fragile and conditional freedoms. The article adapts James Scott's consideration for the subaltern's ‘hidden transcripts’ and agencies to contemporary Cuba. It analyses the unavoidability of informal and illegal practices for daily subsistence; their naturalisation in society in contrast with their delegitimisation as opportunistic self-enrichment in party-controlled media; and how the self-employed resist such judgements in favour of more conciliatory civic visions.
This article investigates gender differences in Nigeria, in the impact of marriage and children on location in the self or waged employment sector, and on income from work. Findings show that the pay structure varies across employment sectors – waged and self-employed – and that the determinants of employment sector vary by gender and family roles. Differences in human capital investment and geopolitical zones also need to be considered. The estimates in the study reveal that there is a marriage premium for both males and females in the waged labour market, but partially support Becker’s (1991) gender-based household specialisation model in terms of the relative incidence of self-employment. There is a wage penalty for married women with children in the paid-employment labour market, but motherhood is also negatively associated with income levels for self-employed women. We also find a fatherhood penalty for paid-employed men. Nevertheless, overall, the gender difference is higher in relatively less regulated self-employment compared to the more regulated paid employment labour market. Findings therefore offer some policy inputs but also suggest the need for further research into the causes of the gender pay gap in self- and paid employment, and thus into the overall wage gap in Nigeria that inhibits women’s labour market participation and welfare.
Labour lawyers are familiar with the binary divide between employees and the self-employed. Historically, this also demarcated the exclusion of competition law restraints on workers’ collective action. In recent times, growing numbers in the labour market are self-employed yet work in circumstances of economic disempowerment. They would benefit from collective bargaining, but competition law operates as a barrier to its realization. This chapter considers a ‘fundamental rights’ strategy for challenging competition law restraints. This strategy is based on the simple claim that the fundamental human right to bargain collectively is a right for ‘everyone’. The chapter identifies some weaknesses and problems with this approach within the European context. Abstractions like the ‘everyone’ argument can be counterproductive because human rights must be situated within existing power relations and economic structures in labour markets. Nevertheless, a suitably contextual fundamental rights strategy has an important role to play. On this contextual approach, reflected in the European Social Charter, entitlements to collective bargaining must be sensitive to substantive social and economic disadvantages. The exclusion of competition law would no longer be tied to specific contractual forms like ‘employee’.
The paper investigates the relation between overeducation and self-employment, in a comparative analysis between immigrants and natives. Using the EU Labour Force Survey for the year 2012 and controlling for a list of demographic characteristics and general characteristics of 30 destination countries, it finds that the likelihood of being overeducated decreases for self-employed immigrants, with inconclusive results for self-employed natives. The results shed light on the extent to which immigrants adjust to labor market imperfections and barriers to employment and might help explain the higher incidence of self-employment that immigrants exhibit, when compared to natives. This is the first study to systematically study the nexus between overeducation and self-employment in a comparative framework. Moreover, the paper tests the robustness of the results by employing two different measures of overeducation, contributing to the literature of the measurement of overeducation.
The share of workers who are self-employed rises markedly with age. Given policy concerns about inadequate retirement savings, especially among those with lower education, and the resulting interest in encouraging employment at older ages, it is important to understand the role that self-employment arrangements play in facilitating work among seniors. New data from a survey module fielded on a Gallup telephone survey distinguish independent contractor work from other self-employment and provide information on informal and online platform work. The Gallup data show that, especially after accounting for individuals who are miscoded as employees, self-employment is even more prevalent at older ages than suggested by existing data. Work as an independent contractor is the most common type of self-employment. Roughly one-quarter of independent contractors aged 50 and older work for a former employer. At older ages, self-employment generally – and work as an independent contractor specifically – is more common among the highly educated, accounting for much of the difference in employment rates across education groups. We provide suggestive evidence that differences in opportunities for independent contractor work play an important role in the lower employment rates of less-educated older adults.
We examine the role of self-employment in retirement transitions using a panel of administrative tax data. We find that the hazard of self-employment increases at popular retirement ages associated with Social Security eligibility, particularly for those with greater retirement wealth. Late-career transitions to self-employment are associated with a larger drop in income than similar mid-career transitions. Data from the Health and Retirement Study suggest that hours worked also fall upon switching to self-employment. These results suggest that self-employment at older ages may serve as a ‘bridge job,’ allowing workers to gradually reduce hours and earnings along the pathway to retirement.
This article examines working-class entrepreneurialism in Turkey from a comparative perspective. Based on ethnographic fieldwork conducted in a working-class neighborhood of İstanbul, the article focuses on the perceptions, aspirations, and entrepreneurial attempts of manual workers employed in formal jobs. It aims to contribute to the understudied literature on working-class entrepreneurialism, which is often overlooked or underestimated by the critical research on labor and the working class. First, the article demonstrates that the level of entrepreneurialism among manual workers is rather high. Alongside revealing the popularity of aspirations for self-employment and the working-class roots of many self-employed individuals, I present an ethnographic account of five workers’ transition from wage work to self-employment. Second, the article finds that a colloquial phrase, “el işi” or “a stranger’s business,” is widely used to refer to wage work. I argue that this phrase perfectly manifests the popular resentment felt toward wage labor in a social milieu where self-employment seems accessible. Finally, by drawing on a review of a scattered set of studies, I claim that entrepreneurialism among working-class men seems to be quite common, especially in peripheral countries.
Using a rich micro dataset drawn from administrative archives, we explore whether Social Security Wealth (SSW) is an important factor affecting the decision to become self-employed. We focus on the two main categories of self-employed professions covered by the Italian public pension system: craftsmen and shopkeepers. We use the large exogenous variation in individual expected SSW that occurred as a result of the policy reform process undertaken in Italy during the 1990s to identify the effect of this variable and we study how the probability of being self-employed or employed depends, amongst other things, on the difference in the expected SSW that accrues under the two alternative employment scenarios. Our key finding is that a higher difference in expected SSW from self-employment compared with employment has a positive effect on the probability of being self-employed and on the probability of switching to self-employment, whereas it has a negative effect on the probability of switching from self-employment to employment.
When compared with wage earners, the self-employed are reported to have a lower take up rate of tax-favored retirement plans in the United States. Using panel data from federal income tax returns for the years 1999–2006, this paper explores the various factors that shape the observed pattern of contributions to such plans by the self-employed. Consistent with previous findings in the literature, contributions rise with income, tax rates, as well as savings in taxable accounts. More interestingly, the novel findings in this paper address the role that debt plays in shaping contributions. While housing and business-related debts are accorded similar tax treatment, the findings show that contributions decline with business debt whereas they rise with household debt.
This paper develops a microfounded macroeconomic modeling framework to investigate the relationship between informality and the income distribution. We show that multiple equilibria may rise if credit markets are imperfect and that there is a nondivisible entry cost in the formal economy. The theoretical analysis demonstrates that in the steady state, low levels of inequality are negatively correlated with high informality; conversely, high inequality exacerbates informality. This finding supports the hypothesis of an optimal level of inequality that minimizes the informal economy relative to the impact of other levels of inequality. However, for ordinary income distributions, changes in the level of inequality have only a slight effect on the informality rate. We calibrate the model using data on the U.S. and Mexican economies to estimate the level of inequality that minimizes the informality rate. The self-employment rate emerges as the most relevant determinant of the informality rate.
This article reflects on some of the major changes in the ways that people are working today, changes often driven by a preference for greater autonomy and choice, but also to work on a sharing, collaborative or networked basis. Many of the growing numbers of independent professionals are attracted by these ways of working. Developments in Information and Communication Technology have been critical, especially in enabling services, including professional services, to be delivered via internet platforms. This has created, in effect, new forms of intermediation and increasingly complex work relationships. These developments have often proved very controversial, as instanced by the disputes surrounding Uber, the international, internet-based taxi provider. Many of these changes also raise issues of accountability and work quality, along with creating new patterns of work relationships. Inevitably, the changes also highlight the role of regulation, which is the main focus of this article The topic is explored against a backdrop of much recent deregulation, challenges to so-called ‘red tape’ and laissez faire policies. The myriad of disputes and litigation involving Uber is examined and reflected upon. There are, of course, many differences between the taxi drivers of Uber and the designers, journalists, engineers and consultants, typical of independent professional working, but there are also some key parallels and experiences that provide a cautionary tale!
The paper deals with self-employment of one-(wo)man-firms as the smallest units of entrepreneurial companies and focuses at the blurred boundaries between dependent work and self-employment. We call the overlapping identities hybrid entrepreneurs. Based on the collected data it can be shown that the hybrid self-employed differ significantly from non-hybrid ‘regular’ entrepreneurs with respect to selected socio-demographic characteristics, professional, as well as company-specific factors. The paper takes up several of the findings and tries to discuss them in a framework of (micro) organizations, institutions and self-employment. Taking the case of hybrid employment fosters crucial and provoking questions for an appropriate understanding of the division of enterprises and occupations.
In many countries self-employment has increased recently. But, despite evidence that many people enter self-employment willingly out of choice, there appears to be an instinctive aversion to it, possibly based on an assumption that employment is more desirable and beneficial and is, and should be, the norm. Often using a UK viewpoint, this paper examines the history of work and suggests that, in historical terms, employment is the exception not the norm. The age of the job, it is claimed, lasted only from 1840 to 1980, but its influence continues and many government regulations and union practices are still based on the era of the big business, big labour and big government triumvirate. Therefore, if the future is not to be constrained by laws and practices designed for the past, it is important to identify the perceptions and assumptions which prevail about employment and to highlight those which are incorrect.
The rise of private sector business in urban China has led to more women engaging in low-end self-employment. This study, however, reveals a more complicated story in the countryside. Drawing on in-depth interviews conducted in a Chinese village, this study finds that the women took the lead in developing sideline self-employment and were then attracted to rural wage employment in the 1980s. With the privatization of rural industries and the rise of capital-intensive self-employment in the 1990s, some women were forced into low-end self-employment, but others were attracted to high-end self-employment, forging individual careers and family ventures. In more recent times, younger women have been more inclined to work on-and-off, balancing self-employment pursuits with the desire to be a good mother. This pattern marks a shift from the continuous multitasking practised by the older generation.
This paper provides a better understanding of the motivational incentives driving franchising choice from the female franchisee's perspective. A qualitative methodology was adopted in this research to gain a clearer picture of the salient issues influencing female entrepreneurs' evaluations of alternative business models when making the self-employment decision. A sample of 14 female franchisees and 12 female independent business owners was interviewed to gather data on the reasons supporting a woman's initial decision to enter self-employment. Major contrasts have been identified between female franchisees and independent business owners suggesting that franchisors need to re-design their selection strategies and communication methods to promote female participation, sustain system wide growth and add creative diversity in franchise systems that have limited growth potential due to the lack suitable franchisees.