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Self-employment through the COVID-19 pandemic: An analysis of linked monthly CPS data

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  • Mindes, Samuel C.H.
  • Lewin, Paul

Abstract

The COVID-19 pandemic that began in the United States in March of 2020 had a profound adverse effect on the economy. In particular, the pandemic had a harsh impact on women, minorities, and self-employed individuals. However, research on why the pandemic hit some groups harder is in its nascent stages. We contribute to the growing body of knowledge by comparatively analyzing the inability to work due to the pandemic in the wage and self-employment sectors. We utilize data from the Current Population Survey from May 2020 to May 2021 to investigate the effect of individual, business, and geographic characteristics on the probability of work interruption in each sector. We find that self-employers were much harder hit but fared better than wage workers in several of the harder-hit sectors and when they had incorporated businesses. We also find that women, non-Whites, and Hispanics were more adversely affected in both sectors.

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  • Mindes, Samuel C.H. & Lewin, Paul, 2021. "Self-employment through the COVID-19 pandemic: An analysis of linked monthly CPS data," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    • Handle: RePEc:eee:jobuve:v:16:y:2021:i:c:s2352673421000585
    DOI: 10.1016/j.jbvi.2021.e00280
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    References listed on IDEAS

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    5. Abreu, Maria & Oner, Ozge & Brouwer, Aleid & van Leeuwen, Eveline, 2019. "Well-being effects of self-employment: A spatial inquiry," Journal of Business Venturing, Elsevier, vol. 34(4), pages 589-607.
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    7. Kalenkoski, Charlene M. & Pabilonia, Sabrina Wulff, 2020. "Initial Impact of the COVID-19 Pandemic on the Employment and Hours of Self-Employed Coupled and Single Workers by Gender and Parental Status," IZA Discussion Papers 13443, Institute of Labor Economics (IZA).
    8. Grashuis, Jasper, 2021. "Self-employment duration during the COVID-19 pandemic: A competing risk analysis," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    9. Wolfe, Marcus T. & Patel, Pankaj C., 2021. "Everybody hurts: Self-employment, financial concerns, mental distress, and well-being during COVID-19," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
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    2. Hammarstedt, Mats & Skedinger, Per, 2024. "Immigrant Self-employment in Turbulent Times: A Decade with Refugee Crisis and the COVID-19 Pandemic," Working Paper Series 1497, Research Institute of Industrial Economics.

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