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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.

Wage employees enter self-employment either directly or in a staged manner and may subsequently undertake multiple stints at self-employment. Extant research on the relationship between entry modes and the persistence and outcomes of self-employment is inconclusive. This study investigates the relationship between wage employees’ initial mode of entry into self-employment and the duration of the subsequent first two stints of self-employment.

This study used a matched longitudinal sample of 9,550 employees who became majority owners of incorporated firms from 2005 to 2016.

The findings demonstrate that the initial mode of entry into self-employment matters for the first two stints at self-employment. Staged entry into self-employment was associated with a shorter first stint and became insignificant for the second stint. Staged entry into self-employment was positively related to the odds of becoming self-employed for the second time in the same firm.

Using a comprehensive and reliable dataset, the paper shifts focus from the aggregated onward journey of novice entrepreneurs (survival as the outcome) to the duration of their self-employment stints. By doing so, the paper offers insights into the process of becoming self-employed and the patterns associated with success/failure in entrepreneurship associated with self-employment duration.

The COVID-19 pandemic created not only a public health crisis but also the largest disruption to the global economies. The purpose of the paper is to investigate the adverse impacts of the pandemic on self-employment including job loss, income reduction and cut back in work hours and how these impacts were related to the well-being the self-employed. The authors also examine how self-employers responded to adversity in different cultural settings.

The main sample was obtained the Gallup World Poll that covers more than 39,000 individuals across 55 countries over the period from October 2020 to June 2021. The ordinary least square was the main choice of methodology. The paper employs the Oaxaca-Blinder decomposition technique to quantify the gap in financial loss between self-employed and employed individuals. Finally, the moderated mediation analysis allows the authors to examine how financial loss mediates the reduction in well-being of self-employers.

The paper finds that self-employers were 29% more likely to lose their businesses than paid individuals to lose their jobs and perhaps as a result, they were 50% more likely to experience lower work hours and less income. The findings suggest that the impact of the COVID-19 pandemic varied across countries. The financial gap between self-employment and full-time employment was narrower in countries with individualism, low uncertainty avoidance and propensity for long-term future. Finally, the paper shows that although financial loss associated with the coronavirus situation mediated the relationship between self-employment and reduced wellbeing, the positive relationship between self-employment and life satisfaction (wellbeing) held amid the pandemic. Despite all the pecuniary setbacks relative to full-time employment, self-employers report higher subjective wellbeing than regular wage earners during difficult times.

The earnings gap between self-employers and employees persists (and increase) during adverse conditions may cast into doubt the efficiency of the economic system that ensures no one is left behind. In addition, contextual factors such as cultural values should also be taken into consideration in reducing the earning gap between self-employment and regular employment. It is also implied that the self-employed choose to engage in self-employment due to psychological and emotion benefits rather than material achievements.

This study has quantified the income gap between self-employment and employed individuals in the context of adverse economic conditions. This study also highlights the fact that despite all the financial setbacks, self-employers are happier than employed individuals and they engage in self-employment as an important way to pursue happiness. This highlights well-being as the critical non-pecuniary benefits of the career choice of and transition into self-employment that have been confirmed in extant entrepreneurship literature.

High levels of youth unemployment in Africa, the difficulty of accessing salaried jobs, and the weakness of public institutions in charge of employment issues push youths towards informal channels that can help them find jobs. Among these informal channels, religion has been playing an increasingly important role. Thus, this study aimed to analyse the effects of religion on youths' access to self-employment.

This study used data from the survey on the improvement of youth employment policies in Francophone Africa—conducted in 2018 by the Laboratory for Economic and Social Research and Studies (LARES) of Marien Ngouabi University—to estimate the effects of religion on access to self-employment. The econometric model employed is a two-stage model. Conditional mixed process developed by Roodman (2011) was used to verify the model's robustness.

The results indicate that religion exhibits a positive and significant effect on access to self-employment. This effect is stronger for youths from Muslim communities than for those from other religious communities, compared to youths who do not engage in religious communities.

Based on the current dynamics observed in numerous African countries with respect to employment access, these results imply that religious denominations should be considered when developing policies and programs related to employment, particularly for youths.

The approach followed in this study contributes to the literature predominantly by demonstrating how the network theory approach helps explain, to some extent, the link between religion and access to employment in general and access to self-employment, particularly in developing economies—mainly in sub-Saharan Africa, where the recourse to informal channels of access to self-employment constitutes a significant solution approach for youths.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0097

A lack of sufficient gainful employment opportunities in developing countries means that those at the bottom of the income ladder resort to self-employment for survival. While self-employment equalises inequality by providing earning opportunities to such individuals due to the ease of entry, it also creates a competitive environment among the self-employed, consequently widening inequality. In light of this, the study aims to determine the optimal level at which self-employment narrows inequality.

Five-yearly average data from 72 developing countries covering 2000–2019 is used. Inequality measures include Gini, and self-employment includes total, male and female participation levels. The empirical analysis is based on the dynamic two-step system Generalized Method of Moments (GMM) estimation approach, two-stage instrumental variables (2 SLS IV) approach and Sasabuchi (1980) and Lind and Mehlum (2010) test. Several robustness checks are used to validate the findings.

Prima facie, the study's findings suggest that self-employment equalises inequality in developing countries. The income-equalising effect can be seen, however, when the total, male and female self-employment levels are below the optimal of 54.22% of total employment, 52.50% of male employment and 54.19% of female employment, respectively. Inequality widens when self-employment exceeds these optimal levels. Further, the income-narrowing effect of self-employment is larger than its income-widening effect. When self-employment is below its optimal level, it reduces inequality 80 times more effectively than when it widens above the optimal levels. The corresponding figures for male and female self-employment are 90 and 52, respectively. Second, the income-equalising effects of self-employment are gender-specific.

Developing countries striving to achieve SDG 10 should limit self-employment to the above-mentioned levels. To this end, an inclusive approach to reducing inequality requires these countries to use selective and targeted policy interventions to create gainful employment opportunities for those above the identified optimal levels and eventually assist them in utilising these opportunities.

To the best of the author’s knowledge, this is the first study to determine the optimal levels at which self-employment equalises income in developing countries. As such, it makes novel contributions to both labour and development economics.

Currently, there is widespread consensus that training is helpful to the long-term success of business competitive advantages. However, youth continue to invest in various self-employment business options with low quality of short term trainings. The purpose of this study was to understand the competency level, training need and the role of training to business survival.

This study examined the training needs of youth engaged in self-employment and validated its role in sustainable business performance using primary data. To determine training needs, data were analysed using effect size, and probit model was used to understand the predictive validity of training gap to business performance.

This study has strong evidence that youth engaged in self-employment career have low entrepreneurial competency. The findings of this study revealed that there was little effort to narrow skill and knowledge gaps of youth before entry into self-employment. Training deficiencies were reported in business planning, confidence, risk and time management, conflict management, and communications skills. In addition, self-employment business options were starting up their function with insufficient entrepreneurial knowledge and skills. This would have limited businesses' better chance of long-run survival. Training should be given to bridge the knowledge and skill gaps of youth to ensure the long-term survival of their business. Recommendations include: government should allocate budget for youth short term training, relevant stakeholders should also create access to training for youths before and after entry into self-employment.

Small businesses, during start up with sufficient knowledge and skills, have a better chance of long-term survival. Therefore, this study calls for organized training that would be given to youth to bridge their knowledge and skill gaps on certain competency items and to ensure the long-term survival of micro and small enterprises. Relevant stakeholders should also deliberately create access to training for youth before and after entry into self-employment.

To the best of the authors' knowledge, this study is the first to provide empirical evidence of measurement of training gap and its effects of training on small business performance. Understanding role of training gap in business performance requires measurement of level of competency and training need in operating self-employment schemes. Validating consequence of level of training needs towards business performance of youth is essential to understand the contribution of skill training in the promotion of self-employment. The predictive validity of training need to business performance enhances our knowledge of the importance of training for small enterprise development. Previous studies focus on real training and its quality, however, fails to link youth self-employment initiatives. The finding of this study provides important insights on how strong skill training is important in supporting long term survival of youth self-employment.

Self-employment is considered one of the responses to precarious employment, particularly among those who lost jobs during an economic crisis. Although starting a new business is widely available, operating new ventures remains challenging. This article aims to explore the premises of self-employment success, namely self-employment intention and proactive coping as crucial predictors of further performance.

The authors recruited participants among initially unemployed individuals who participated in the entrepreneurial program aimed at creating self-employment. Since entrepreneurs are expected to have specific personal characteristics important for performance, the authors assessed proactive coping as the key factor for self-employment intention.

The results depicted proactive coping as crucial in performing own ventures in the long run, which suggests that self-employment intention may change over time.

Proactive coping is particularly appropriate for self-employed at any stage of the entrepreneurial process because it maintains the intention to perform own business. Thus, the findings underline the need for proactive coping training for entrepreneurs, particularly those previously unemployed.

As the self-employment intention may differ in time, the importance of being proactive in operating small businesses increases.

This study examines the impact of college education on incorporated and unincorporated self-employments. It specifically compares the effects on African Americans and Hispanics with the effects on Whites.

The study sample was drawn from the US Current Population Survey between 1989 and 2018. Based on a sample size of 1,657,043 individuals, this study employed logit regression models to test the hypotheses. Racial variations were examined using African Americans and Hispanics as moderators.

The results suggest that college education increases incorporated self-employment and reduces unincorporated self-employment. The impact of college education on incorporated self-employment is stronger for African Americans and Hispanics than for Whites. In contrast, its effect on unincorporated self-employment is stronger for Whites than for African Americans and Hispanics.

The findings provide empirical evidence of how college experience changes the motivation of starting an incorporated or unincorporated business. The results suggest that college education impacts African Americans and Hispanics differently than Whites in pursuing their career path of entrepreneurship.

It is the first study that examines the relationship between college education and incorporated/unincorporated self-employment. It also sheds light on radical variations.

In recent years, there has been a concern that employers are falsely classifying employees as self-employed to evade collective agreements and labour laws (e.g. minimum wages, working time legislation and protection in case of redundancy), and the result is that these dependent self-employed suffer poorer working conditions. The purpose of this paper is to provide an extensive evaluation of the working conditions of those in dependent self-employment compared with the genuine self-employed.

To do so, data are reported from a 2015 European Working Conditions Survey of 35,765 workers in 28 European Union member states.

Of the 4.3 per cent of the working population found to be in dependent self-employment, the finding is that they have similar working conditions to the genuine self-employed in terms of their physical and social environment and intensity of work. However, they have poorer job prospects and less ability to use their skills and discretion than the genuine self-employed. In terms of the working time quality, meanwhile, the finding is that they have better conditions than the genuine self-employed. Therefore, this analysis uncovers the need for a more nuanced understanding of the relative working conditions of the dependent self-employed.

If the working conditions of the dependent self-employed are to be tackled, evaluation is now required of whether the current policy approaches, such as developing a hybrid category of employment with legal rights attached, address the specific working conditions that are worse for the dependent self-employed.

This is one of the few papers which provides an extensive evaluation of the working conditions of those in dependent self-employment in the EU28.

The purpose of this paper is to test whether the usual positive effect of self-employment on job satisfaction remains once the greater autonomy and flexibility afforded by self-employment have been factored in, as well as the existence of differences in unobserved characteristics across individuals.

It may be thought that the probability of being self-employed and the declared job satisfaction are not independent from each other due to differences in unobserved characteristics – as psychological or personality traits – across individuals. Therefore, self-employment should be treated as an endogenous variable when it is introduced as an explanatory variable in a job satisfaction equation. Given this, the paper proposes the estimation of a treatment effect model in which self-employment and job satisfaction equations are estimated jointly.

The results suggest that the usual positive effect of self-employment on job satisfaction is due to the greater work autonomy afforded by self-employment, and not to the greater willingness of the self-employed to report higher levels of satisfaction. Thus, the paper finds that once flexibility and autonomy are considered, the usual positive effect of self-employment on job satisfaction disappears and becomes negative.

It would be useful further empirical analysis using other data, especially panel data, to test the robustness of the results.

The paper proposes an alternative way to analyse the relation between self-employment and job satisfaction by taking into account both the greater autonomy and flexibility afforded by self-employment, as well as psychological or personality traits.