What determines self-employment? A comparative study

Abstract

This article consists of a comparative study of the incidence of self-employment (SE) between Greece, which has the highest rate of SE in the European Union and the United Kingdom, which has amongst the lowest. Data from the Greek and the UK Labour Force Surveys are used in order to assess how personal attributes of an individual have an impact on the incidence of SE. It is found that common patterns exist between these two countries. In particular, it is found that for both countries, males have greater odds of being self-employed than females, older people have greater odds than younger, individuals employed in the primary and tertiary sectors have greater odds than the ones employed in the secondary, and that individuals with primary or secondary education have greater odds of being self-employed than individuals holding higher degrees. The incidence of SE is also found to differ according to the occupation of the individual. On the other hand, the findings indicate that individuals, residing in London, have greater odds of being self-employed than individuals working outside UK's capital, whereas in Greece the pattern is reversed.

Acknowledgement

The author is grateful to Cagri Yalkin for her various suggestions and comments on this article.

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