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

Sarah Brown (), Lisa Farrell () and Mark Harris

No 2008010, Working Papers from The University of Sheffield, Department of Economics

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.

Keywords: Discrete Choice Models; Dogit Models; Self-Employment. (search for similar items in EconPapers)
JEL-codes: C10 C25 J23 J33 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2008-09, Revised 2008-09
New Economics Papers: this item is included in nep-dcm, nep-ent and nep-lab
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: MODELING THE INCIDENCE OF SELF‐EMPLOYMENT: INDIVIDUAL AND EMPLOYMENT TYPE HETEROGENEITY (2011)
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