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The purpose of this paper is to investigate the influence of the predicted earnings differential between self‐employment and wage‐employment on self‐employment propensities in Sweden using a large data set from the year 2003.

The analysis in the paper is based on the presumption that the individual chooses to work in either the self‐employed or the wage‐employed sector. The separate earnings functions for the self‐employed and the wage‐employed are estimated in order to predict an individual's earnings in each sector. In order to overcome selectivity problems a Heckman approach is used at this stage. Finally, a structural probit model, where the difference in predicted earnings from the two sectors is included as an independent variable, is estimated.

The main result is that the predicted differential between self‐employment and wage‐employment earnings plays an important role for the self‐employment decision and that an increase in this earnings differential will lead to a higher self‐employment rate and to an increase in total employment in Sweden.

The policy relevance of this question is evident since previous research has shown that self‐employed individuals do not only create jobs for themselves but also for others. Thus, an increase in the earnings from self‐employment relative to the earnings from wage‐employment will increase the self‐employment rate as well as total employment.

Using unique register data for Sweden we match self-employed persons to their employees. The purpose of the paper is to investigate which factors that influence the composition of the workforce in terms of national background. To analyse workforce composition we estimate the probability of only employing co-nationals in the firm. A majority of the self-employed do not have employees so the used sample constitutes a small share of all self-employed. To account for the selection in the choice of having employees we estimate a selection model of Heckman type.

We find that a higher share of immigrants in the municipality increases the probability of hiring immigrants, both for native and immigrant self-employed. We also find that the probability for immigrants to only employ co-nationals decreases with time spent in Sweden. These results point to that the proximity to people from the same region and one's network plays an important part for the employment decisions for the self-employed.

Insights into the origins of entrepreneurial activity are gained through a study of alternative mechanisms implicated in the tendency for children of the self-employed to be substantially more likely than other children to enter into self-employment themselves. I use unique life history data to examine the impact of parental self-employment on the transition to self-employment in Denmark and assess the different mechanisms identified in the literature. The results suggest that parental role modeling is an important source of the transmission of self-employment. However, there is little evidence to suggest that children of the self-employed enter self-employment because they have privileged access to their parent's financial or social capital, or because their parents’ self-employment allows them to develop superior entrepreneurial abilities.

According to Sen's theoretical framework of capability (1985), individuals reach their full potential once they have the freedom, intended as the set of functionings at their disposal, to do so. However, many critiques have been developed against the lack of embeddedness of the capability approach in social and political relations and structures. In this article, the authors investigate the influence of three institutional contexts (Belgium, the Netherlands and France) on the respective work-related functionings of self-employed and regular workers, with a focus on human capital investment and institutional support offered to them.

Data from the European Working Conditions Survey (EWCS) are used to highlight similarities and differences in building work-related functionings for regular and self-employed workers. A regression analysis is provided at the country level.

In the three labour markets, the authors find that the building of work-related functionings is more successful for regular employees, especially as regards institutional support. Self-employed workers, on the other hand, need to rely on their individual capability as regards employment protection and human capital investment. However, the authors find interesting differences between the three institutional contexts. In both Belgium and France, self-employed workers are subject to higher instability in terms of changes in salary and hours worked, whereas atypical work is better positioned in the Dutch labour market. The Netherlands is also characterised by a less significant gap between regular and self-employed workers with respect to participation in training.

In this article, the authors contextualise Sen's (1985) theoretical framework by taking into account the institutional differences of labour markets. In particular, the authors provide a novel application of his capability approach to regular and self-employed workers in an economically relevant European area.

Self-employed workers typically report higher well-being levels than employees. The purpose of this paper is to examine the mechanisms that lead to differences in work engagement between self-employed and organizationally employed high-skilled workers.

Self-employed and organizationally employed high-skilled workers (N=167) were compared using a multigroup multilevel analysis. Participants assessed their job control (general level) and reported their work engagement during work tasks (task level) by means of the Day Reconstruction Method. Aspects of job control (autonomy, creativity, and learning opportunities) and task characteristics (social tasks and core work tasks) were contrasted for the two groups as predictors of work engagement.

Self-employed workers reported higher levels of job control and work engagement than organizationally employed workers. In both groups, job control predicted work engagement. Employees with more opportunities to be creative and autonomous were more engaged at work. Self-employed workers were more engaged when they had more learning opportunities. On the task level, the self-employed were more engaged during core work tasks and social tasks.

The findings suggest that self-employment is an effective way for high-skilled workers to increase the amount of job control available to them, and to improve their work engagement. From an intervention perspective, self-employed workers may benefit most from more learning opportunities, more social tasks, and more core work tasks. Organizationally employed workers may appreciate more autonomy and opportunities for creativity.

This study contributes to a better understanding of the role that job control and task characteristics play in predicting the work engagement of high-skilled self-employed and organizationally employed workers.

The purpose of this paper is to map and understand work-family state support for the self-employed compared to employees across European countries.

To map state work-family support policies for the self-employed, an overview of public childcare, maternity, paternity, and parental leave arrangements across European countries is created based on databases, local government web sites, and local experts’ country notes. Secondary data analyses are conducted in order to compare support for the self-employed to support for employees and across countries. Differences across countries are analysed from a welfare state regime perspective, which explicates assumptions about the role of the government in providing work-family state support and which is often used in research on work-family support for employees.

Results show that, in general, the self-employed receive less work-family state support than employees or none at all. The extensiveness of work-family state support varies widely across European countries. Patterns of welfare states regimes, which explain variation in work-family support for employees, can also be found in the context of self-employment.

Findings result in practical suggestions for policy makers at the European and national level to monitor policy compliance considering maternity leave for the self-employed, to increase childcare support, and to rethink the European Entrepreneurship 2020 Action Plan.

Work-family state support for the growing number of self-employed has never been mapped before, although this is a very topical issue for (European) policy makers. This paper offers a starting point to contextualise and understand the way self-employed experience the work-family interface in different country contexts.

This paper studies the entrepreneurial undertaking and economic success of immigrants and natives in Germany, namely the West Germans, the East Germans, the guestworkers, and other immigrants.

The paper studies factors that affect the sorting of individuals into self‐employment and investigate whether the self‐employed fare better than the paid‐employed, and whether self‐employed immigrants fare better than Germans. Employing data from the German Socioeconomic Panel both the probability to choose self‐employment through a probit and the selection adjusted earnings are estimated.

The paper finds that the probability of self‐employment increases significantly with age for all ethnicity groups. More education and a self‐employed father propel self‐employment choices for West Germans only. Immigrants are rather pushed into self‐employment to avoid unemployment; however, they are able to traverse the socioeconomic gap through self‐employment. Except for the East Germans, the self‐employed earn more than their salaried counterparts, and immigrants fare the best, having the highest earnings of all groups. For immigrants, entrepreneurship maybe a way of “making” it in the new country. While self‐employment is a lucrative choice for immigrants, their rates remain low.

This study produces new empirical evidence on the importance of the self‐employment sector in Germany, where individuals fare well and where immigrants can achieve earnings over‐assimilation compared to natives and higher occupational prestige.

There is growing political interest in new forms of precarious self‐employment located in a “grey area” between employment and self‐employment. A wide range of concepts has been used to debate this issue, and this paper aims to clarify these debates through the concept of involuntary self‐employment.

The paper reviews the empirical, conceptual and legal‐policy approaches to involuntary self‐employment via three country case studies in Finland, Germany and the UK. A range of relevant domestic academic literature, articles in the media, selected key expert interviews, and policy and legal documents are employed.

Conceptual clarity regarding involuntary self‐employment is achieved through a discussion of two aspects of the phenomenon: the characteristics of involuntariness from a motives‐based perspective, and the legal/economic perspectives and policy issues. The motives‐based analysis argues that involuntariness as such does not seem to have severe implications on the individuals' well being, given that the individual earns a satisfactory livelihood from her or his business activities. The discussion of the characteristics of and regulation related to working arrangements in the “grey area” between employment and self‐employment, where the self‐employed individual is strongly dependent on the principal, shows that it is very difficult to regulate quasi self‐employment without harming “voluntary” forms of enterprise and inter‐firm cooperation at the same time.

The key contribution of the paper is to facilitate a foundation for subsequent empirical research and policy development.

Previous research has shown that self-employed workers are more likely than employees to retire late or to be uncertain about retirement timing. However, little is known about the underlying mechanisms. This study aims to fill this gap, by focusing on the explanatory role of various job characteristics – flexibility, autonomy, skills-job match and job security – for explaining differences in retirement preferences between the solo self-employed and employees.

Data were used of 8,325 employees and 663 solo self-employed respondents (age 45–64) in the Netherlands, who participated in 2016 in the Study on Transitions in Employment, Ability, and Motivation (STREAM). The outcome variable distinguished between early, on-time, late and uncertain retirement preferences. Multinomial logistic regression models were estimated, and mediation was tested using the Karlson-Holm-Breen (KHB) method.

The solo self-employed are more likely than employees to prefer late retirement (vs “on-time”) and to be uncertain about their preferred retirement age. Job characteristics mediate 21% of the relationship between solo self-employment and late retirement preferences: the self-employed experience more possibilities than employees to work from home and to choose their own working times, which partly explains why they prefer to retire late.

In discussions about retirement, often reference is made to differences in retirement savings and retirement regulations between the solo self-employed and employees. The current study shows that differences in job characteristics also partly explain the relatively late preferred retirement timing of solo self-employed workers.

This paper analyses the relation between occupational characteristics and the probability that a worker in the Netherlands has a false self-employed arrangement instead of an employee arrangement. These are arrangements in which self-employed workers perform tasks in the hierarchy of the firm as if they were employees.

Data from the Dutch Labour Force Survey is used to analyse the relationship between occupational skill, routine and wage level and the probability to be a false self-employed or a standard or non-standard employee.

The results show that the probability to be false self-employed decreases slightly with the skill level of the occupation, but there is no evidence that false self-employment is more likely in low paid, routine occupations. Workers in the lowest paid occupations are more likely to have a non-standard contract as an employee. False self-employment arrangements are more likely in the (lower) middle paid occupations. Finally, the results show that working in the highest paid occupations increases the probability of being in a false self-employed arrangement, but only in arrangements that are characterised by economic and organizational dependency. These are arrangements with financial dependency on one client for income combined with dependency on this client on when and where to work.

This study makes an important contribution to the literature on identifying vulnerable self-employed workers as well as to the literature on mechanisms behind the growth of solo self-employment.