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The Relative Earnings from Self and Paid Employment: A Time-Series Analysis for the UK

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  • Robson, Martin T

Abstract

The author investigates the determinants of variations in the reported relative earnings of self-employed and paid-employed workers in the United Kingdom, focusing in particular on the significant decline which has taken place since 1980. He finds that the main factors behind this decline have been the rise in the rate of self-employment itself and a reduction in the level of capital per self-employed worker; effects which he associates with a decline in the quality of the average self-employed business. Changes in the tax rates on income and in the sectoral composition of GDP helped to reduce the scale of the decline in self-employment relative earnings to some degree. Copyright 1997 by Scottish Economic Society.

Suggested Citation

  • Robson, Martin T, 1997. "The Relative Earnings from Self and Paid Employment: A Time-Series Analysis for the UK," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(5), pages 502-518, November.
    • Handle: RePEc:bla:scotjp:v:44:y:1997:i:5:p:502-18
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    Cited by:

    1. Thomas Åstebro & Pontus Braunerhjelm & Anders Broström, 2013. "Does academic entrepreneurship pay?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(1), pages 281-311, February.
    2. Trevor Jones & Monder Ram, 2007. "Re-embedding the ethnic business agenda," Work, Employment & Society, British Sociological Association, vol. 21(3), pages 439-457, September.
    3. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
    4. Harding, John P. & Rosenthal, Stuart S., 2017. "Homeownership, housing capital gains and self-employment," Journal of Urban Economics, Elsevier, vol. 99(C), pages 120-135.
    5. Nils Braakmann, 2007. "Differences in the earnings distribution of self- and dependent emploxed German men - evidence from a quantile regression decomposition analysis," Working Paper Series in Economics 55, University of Lüneburg, Institute of Economics.
    6. Åstebro, Thomas & Chen, Jing, 2014. "The entrepreneurial earnings puzzle: Mismeasurement or real?," Journal of Business Venturing, Elsevier, vol. 29(1), pages 88-105.
    7. Simon Parker, 2000. "Saving to Overcome Borrowing Constraints: Implications for Small Business Entry and Exit," Small Business Economics, Springer, vol. 15(3), pages 223-232, November.

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