MODELING THE INCIDENCE OF SELF‐EMPLOYMENT: INDIVIDUAL AND EMPLOYMENT TYPE HETEROGENEITY |
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| Authors: | SARAH BROWN LISA FARRELL MARK N. HARRIS |
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| Affiliation: | 1. Brown: Professor of Economics, Department of Economics, University of Sheffield, 9 Mappin Street, Sheffield S1 4DT. Phone +44(0)114 2223404, Fax +44(0)114 2223458, E‐mail sarah.brown@sheffield.ac.uk;2. Farrell: Professor, Discipline Head, Economics, School of Economics, Finance and Marketing, RMIT University, Melbourne, Australia. Phone +613 9925 5891, E‐mail lisa.farrell@rmit.edu.au |
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| Abstract: | Modeling the incidence of self‐employment has traditionally proved problematic. Although the supply‐side characteristics of the self‐employed are well documented, we argue that the literature has neglected demand‐side aspects. We explore the determinants of self‐employment using the U.S. Survey of Consumer Finances. We present results from an econometric framework that allows us to model, separately and simultaneously, the influences of individual heterogeneity (i.e., supply‐side factors) and employment type heterogeneity (i.e., demand‐side factors) on the probability of self‐employment. Our findings suggest that while individual characteristics are important determinants of self‐employment, there are factors specific to the type of employment that influence self‐employment. (JEL J23, J33, C25, C10) |
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