Open Access Journal Article

Does ‘Being Your Own Boss’ raise your chance of becoming someone else’s Boss?

by Lixin Cai a,* orcid
a
Future of Employment and Skills Research Centre, University of Adelaide, Adelaide, Australia
*
Author to whom correspondence should be addressed.
EAL  2023, 43; 2(4), 43; https://doi.org/10.58567/eal02040008
Received: 23 March 2023 / Accepted: 7 August 2023 / Published Online: 15 December 2023

Abstract

Self-employment is often associated with entrepreneurship and regarded as a driver of innovation, job creation and economic growth. As such, many countries have policies to promote and support self-employment. One mechanism for self-employment to drive job growth is for sole traders to become an employer through hiring employees. However, there are few studies that investigate if solo self-employment helps the transitions into employership. Using the Understanding Society data, this study shows that in the UK labour market solo self-employment does not work as a ‘steppingstone’ to employership. This raises the question why self-employment should be promoted through public policy as in the UK and many other developed countries.


Copyright: © 2023 by Cai. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

Share and Cite

ACS Style
Cai, L. Does ‘Being Your Own Boss’ raise your chance of becoming someone else’s Boss?. Economic Analysis Letters, 2023, 2, 43. https://doi.org/10.58567/eal02040008
AMA Style
Cai L. Does ‘Being Your Own Boss’ raise your chance of becoming someone else’s Boss?. Economic Analysis Letters; 2023, 2(4):43. https://doi.org/10.58567/eal02040008
Chicago/Turabian Style
Cai, Lixin 2023. "Does ‘Being Your Own Boss’ raise your chance of becoming someone else’s Boss?" Economic Analysis Letters 2, no.4:43. https://doi.org/10.58567/eal02040008
APA style
Cai, L. (2023). Does ‘Being Your Own Boss’ raise your chance of becoming someone else’s Boss?. Economic Analysis Letters, 2(4), 43. https://doi.org/10.58567/eal02040008

Article Metrics

Article Access Statistics

References

  1. Baumol, W., (1996). Entrepreneurship: Productive, Unproductive, and Destructive. Journal of Business Venturing. 11, 3-22. https://doi.org/10.1016/0883-9026(94)00014-X
  2. Cowling, M., Wooden, M., (2021). Does Solo Self-employment Serve as a ‘Stepping Stone’ to Employership? Labour Economics. 68. https://doi.org/10.1016/j.labeco.2020.101942.
  3. Greene, W., (2002). Econometric analysis, 4th edition, Macmillan Publishing Company: New York.
  4. Heckman, J., (1981). The Incidental Parameter Problem and the Problem of Initial Conditions in Estimating a Discrete Time-Discrete Data Stochastic Process, in: Manski, C. and McFadden, D. (Eds), Structural Analysis of Discrete Data. MIT Press, Cambridge.
  5. Henley, A., (2019). Transitioning from Solo Self-employed to Microbusiness Employer: Local Economic Environment or Owner Characteristics? IZA Discussion Paper No. 12189. https://ssrn.com/abstract=3390176
  6. Knies, G., (2018). Understanding Society Waves 1-8 User Guide. Institute for Social and Economic Research, University of Essex.
  7. Lechmann, D., Wunder, C., (2017). The Dynamics of Solo Self-employment: Persistence and Transition to Employership. Labour Economics. 49, 95-105. https://doi.org/10.1016/j.labeco.2017.09.002
  8. Millan, A., Millan, J., Congregado, E., Roman, C., (2014). Persistence in Entrepreneurship and Its Implications for the European Entrepreneurial Promotion Policy. Journal of Policy Modeling. 36, 83-106. https://doi.org/10.1016/j.jpolmod.2013.10.001
  9. Mundlak, Y., (1978). On the Pooling of Time Series and Cross Section Data. Econometrica. 46, 69-85. https://doi.org/10.2307/1913646
  10. OECD, (2000). OECD Employment Outlook 2000. OECD Publishing, Paris.
  11. OECD/European Union, (2014). The Missing Entrepreneurs 2014: Policies for Inclusive Entrepreneurship in Europe. OECD Publishing, Paris. https://doi.org/10.1787/9789264213593-en
  12. Wooldridge, J., (2005). Simple Solutions to the Initial Conditions Problem in Dynamic, Nonlinear Panel Data Models with Unobserved Heterogeneity. Journal of Applied Econometrics. 20, 39–54. https://doi.org/10.1002/jae.770