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Self-employment in the Covid-19 crisis: a CEP Covid-19 analysis

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  • Blundell, Jack
  • Machin, Stephen

Abstract

We report results from the LSE-CEP Survey of UK Self-employment May 2020.1 The self-employed have been hit particularly hard by the Covid-19 crisis, with approximately three quarters reporting less work in April 2020 than usual. The largest reductions in self-employment hours and income are among lower-income, older individuals without employees. There are no gender differences in the aggregate, however this is due to self-employed women being more likely to be able to work from home. Comparing men who can work from home against women who can work from home, women are more negatively affected than men. A third of self-employed workers have felt that their health was at risk while working during the coronavirus crisis, and this was significantly higher among those who work in app-based jobs. On average, higher-income workers are more likely to apply for the Coronavirus Self-employment Income Support Scheme. Over 40% of those who had not applied are unsure whether they are eligible. On average, the self-employed expect their work to return to normal in September 2020. A fifth think it will take until 2021 and 1 in 20 expect that their work will never return back to normal. The self-employed value income support highly. On average they are prepared to sacrifice 10% of their regular income to be guaranteed similar support for future shocks. Solo self-employed individuals value income support by twice as much as the self-employed with employees.

Suggested Citation

  • Blundell, Jack & Machin, Stephen, 2020. "Self-employment in the Covid-19 crisis: a CEP Covid-19 analysis," LSE Research Online Documents on Economics 104550, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:104550
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    File URL: http://eprints.lse.ac.uk/104550/
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    References listed on IDEAS

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    1. Stuart Adam & Helen Miller, 2019. "Principles and practice of taxing small business," IFS Working Papers W19/31, Institute for Fiscal Studies.
    2. Claudia Hupkau & Barbara Petrongolo, 2020. "Work, Care and Gender during the COVID‐19 Crisis," Fiscal Studies, John Wiley & Sons, vol. 41(3), pages 623-651, September.
    3. Nicholas Bloom, 2009. "The Impact of Uncertainty Shocks," Econometrica, Econometric Society, vol. 77(3), pages 623-685, May.
    4. Adams-Prassl, Abi & Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2020. "Inequality in the impact of the coronavirus shock: Evidence from real time surveys," Journal of Public Economics, Elsevier, vol. 189(C).
    5. David Blanchflower & Rui Costa & Stephen Machin, 2017. "The Return of Falling Real Wages," CEP Real Wages Updates 006, Centre for Economic Performance, LSE.
    6. Tito Boeri & Giulia Giupponi & Alan B. Krueger & Stephen Machin, 2020. "Solo Self-Employment and Alternative Work Arrangements: A Cross-Country Perspective on the Changing Composition of Jobs," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 170-195, Winter.
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    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Economic consequences > Employment and Work

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    Cited by:

    1. Elisabeth Lopez-Perez & Ana Rodriguez-Santiago & Emilio Congregado, 2020. "Persistence in Self-Employment Rates before the Great Lockdown: The Case of the UK," Sustainability, MDPI, vol. 12(16), pages 1-13, August.
    2. Jiaqi Li & Anna Valero & Guglielmo Ventura, 2020. "Trends in job-related training and policies for building future skills into the recovery," CVER Research Papers 033, Centre for Vocational Education Research.
    3. Josefine Hansson & Bodil J Landstad & Stig Vinberg & Marianne Hedlund & Åsa Tjulin, 2022. "Small business managers and Covid-19—The role of a sense of coherence and general resistance resources in coping with stressors," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-16, March.
    4. Dhingra, Swati & Machin, Stephen Jonathan, 2020. "The crisis and job guarantees in urban India," LSE Research Online Documents on Economics 108222, London School of Economics and Political Science, LSE Library.
    5. Josh De Lyon & Swati Dhingra, 2020. "Covid-19 and Brexit: Real-time updates on business performance in the United Kingdom," CEP Covid-19 Analyses cepcovid-19-006, Centre for Economic Performance, LSE.
    6. Tavares, Aida Isabel, 2021. "Working more and less hours, profiling old European workers during first wave of COVID-19 pandemic, evidence from SHARE data," MPRA Paper 111263, University Library of Munich, Germany.
    7. Brikena Leka, 2020. "An Overview of the Pandemic Impact in the Economy of Albania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 23(78), pages 2-12, December,.
    8. Marta Fana & Sergio Torrejón Pérez & Enrique Fernández-Macías, 2020. "Employment impact of Covid-19 crisis: from short term effects to long terms prospects," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 391-410, September.
    9. Enesiti Chirume, 2021. "The Effects of Covid-19 on the Financial Sector and the Role of Social Media as an Advertising Tool in these Trying Times in Zimbabwe," Journal of Economics and Behavioral Studies, AMH International, vol. 13(2), pages 8-15.

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    More about this item

    Keywords

    coronavirus; Covid-19;

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • N0 - Economic History - - General

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