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Self-Employment Dynamics and Self-Employment Trends: A Study of Canadian Men and Women, 1982-1995

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  • Peter Kuhn
  • Herb Schuetze

Abstract

Self-employment has risen dramatically in Canada, accounting for a disproportionate share of job growth since the 1980's. Using hitherto-unexploited information on labour force transitions from 13 waves of the Survey of Consumer Finances between 1982 and 1995, we show that the changes in transition patterns underlying these increases were very different for women and men. For women, most of the increase in self-employment is attributable to an increase in their retention rates in self-employment. For men, most is attributable to a decrease in the stability of paid employment, i.e. a rise in transitions from employment to non-employment. This generates an increase in self-employment because non-employed men are much more likely than employed men to enter self-employment. Changes in demographic characteristics account for very little of these altered transition probabilities. Somewhat paradoxically, self-employment thus rose both in secularly improving (women's) and deteriorating (men's) labour markets, due to different changes in the underlying transition processes.

Suggested Citation

  • Peter Kuhn & Herb Schuetze, "undated". "Self-Employment Dynamics and Self-Employment Trends: A Study of Canadian Men and Women, 1982-1995," Canadian International Labour Network Working Papers 31, McMaster University.
  • Handle: RePEc:mcm:cilnwp:31
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    References listed on IDEAS

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    1. repec:fth:prinin:391 is not listed on IDEAS
    2. Henry S. Farber, 1997. "Alternative Employment Arrangements as a Response to Job Loss," Working Papers 770, Princeton University, Department of Economics, Industrial Relations Section..
    3. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
    4. David Blanchflower & A Oswald, 1991. "Self-Employment and Mrs Thatchers Enterprise," CEP Discussion Papers dp0030, Centre for Economic Performance, LSE.
    5. Henry S. Farber, 1997. "Alternative Employment Arrangements as a Response to Job Loss," Working Papers 770, Princeton University, Department of Economics, Industrial Relations Section..
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    Cited by:

    1. Knut Røed & Jens Fredrik Skogstrøm, 2014. "Unemployment Insurance and Entrepreneurship," LABOUR, CEIS, vol. 28(4), pages 430-448, December.

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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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