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The nature of self-employment: how does gender matter?

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  • Hannu Tervo
  • Mika Haapanen

Abstract

This paper analyses female and male entrepreneurship and the differences between them in Finland. The female self-employment rate is clearly lower than that of male self-employment in Finland. The paper shows that differing behaviour accounts for differing rates of self-employment between females and males. The predicted earnings differential between self-employment and paid employment has a divergent effect on the probabilities of self-employment. For males, it is positive (as expected). For females, it has no effect, which accentuates the other motives they have for self-employment. Both spouse and family are found to have bigger effects on female self-employment than on male self-employment. Yet, personal characteristics are behind entrepreneurship for both sexes. Regional characteristics are more important for male than female self-employment. The analysis is based on a structural probit model and a large register-based data set representing a 7% random sample of all Finns in 2001.

Suggested Citation

  • Hannu Tervo & Mika Haapanen, 2010. "The nature of self-employment: how does gender matter?," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 9(3), pages 349-371.
    • Handle: RePEc:ids:ijesbu:v:9:y:2010:i:3:p:349-371
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    Citations

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    Cited by:

    1. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    2. Shashwati Banerjee & Kishor Goswami, 2020. "Self-employed or Paid Employed: Who can Earn more among the Slum Dwellers and Why?," Progress in Development Studies, , vol. 20(1), pages 7-25, January.
    3. Dominik Buttler & Eva Sierminska, 2020. "Career or Flexible Work Arrangements? Gender Differences in Self-employment in a Young Market Economy," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 70-95, March.
    4. Anu Tokila & Hannu Tervo, 2011. "Regional differences in returns to education for entrepreneurs versus wage earners," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 689-710, December.
    5. Hannu Tervo & Hannu Niittykangas, 2011. "Self-employment transitions at older ages in different local labor markets," ERSA conference papers ersa11p764, European Regional Science Association.
    6. Hannu Tervo, 2014. "Who turns to entrepreneurship later in life? - Push and pull in Finnish rural and urban areas," ERSA conference papers ersa14p236, European Regional Science Association.
    7. Anders Hoffmann & Martin Junge & Nikolaj Malchow-Møller, 2015. "Running in the family: parental role models in entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 79-104, January.

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