Who are the Self-employed? A New Approach

Abstract

Whilst the individual supply-side characteristics of the self-employed are well documented, the literature has largely neglected (or mis-specified) demand-side aspects. Our econometric framework, based on the parameterised DOGEV model, allows us to separately, and simultaneously, model supply and demand-side influences. We show that whilst individual characteristics are important determinants of type of employment contract held, there are important contract-specific factors influencing the contract an individual is employed under. Our results suggest that workers may be "captive" to particular types of employment because of the sectors in which they work, the number of hours they prefer to work and their ethnicity.self-employment, captivity