Intergenerational links, gender differences, and determinants of self-employment

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Purpose– The purpose of this paper is to investigate the determinants of self-employment, using data from the British Household Panel Survey.Design/methodology/approach– Using the maximum likelihood estimation, the authors estimate the Probit models via disaggregation of the sample by male and female, and inclusion of regional and industrial controls.Findings– This paper finds that the intergenerational links in self-employment run significantly through father-son, and mother-daughter. In addition, the authors find that lump-sum endowment, aspiration, marriage and education attainment are all significant and positive determinants for female self-employed while insignificant for male self-employed. Variables including number of children, health of the individual, and age effect are more important determinants for male than for female self-employed.Research limitations/implications– The findings show that there are significant differences between male and female self-employed. Future studies on self-employment should therefore distinguish the two genders in their econometric models.Originality/value– The authors reinforce and add to the exiting literature on gender differences in the determinants of self-employment. The authors disaggregate the data by gender, and introduce some important variables for empirical studies, such as father self-employed, mother self-employed, aspiration, health of the individual, and age effect.