Self-employed Research Articles

Self-Employment in Times of Crisis: The Case of the Spanish Financial Crisis

While some researchers have suggested that the self-employment (SE) sector is a haven during a financial crisis, others believe that SE is not necessarily the desired outcome, but an indicator that the labor market is tightening for some groups. Few researchers have compared the SE sector before and after the occurrence of a significant financial crisis, especially in developed countries. This paper analyzes the determinants of entry into self-employment during the 2008 Spanish Crisis. Using data from the Encuesta de Presupuesto Familiar (EPF), results show that although the rate of SE did not experience a significant change during this time, the crisis affected people differently based on gender, with females being more affected than males. Results also suggest differences between Comunidades Autonomas in how the self-employment sector behaved during the crisis.

On the status quo and influencing factors on the knowledge, attitude and practice of innovation and entrepreneurship activities in a medical university

Objective To understand the situation of college students' knowledge, attitude and practice (KAP) of innovation and entrepreneurship activities and analyze their influencing factors, in order to provide a scientific basis for further promotion of innovation and entrepreneurship activities. Methods A self-administered questionnaire survey using cluster sampling method was conducted among 850 undergraduates in a medical university in May, 2018. The demographic characteristics and questions pertaining to the KAP of innovation and entrepreneurship activities were collected, The weighted scores of KAP were calculated using the Delphi method. Chi-square test, multivariate logistic regression and linear regression analysis were used to analyze the data. Results A total of 850 questionnaires were sent out and 800 valid questionnaires were collected. The average scores and pass rates for the knowledge, attitude and practice of the 800 college students were (0.54±0.14), 38.1%; (0.56±0.23), 51.5%; and (0.37±0.19), 12.6%, respectively. Knowledge: the pass rate for the concepts related to innovation and entrepreneurship was 70.5%, and the pass rate for the policies related to innovation and entrepreneurship was 17.2%. The pass rate of senior students and excellent students were higher than those of junior students and students of lower academic competence (P=0.000, P=0.004). Attitudes: the pass rate for attitude towards the relationship between innovation and entrepreneurship and personal development was 63.6%, the pass rate for attitudes towards participation in innovation and entrepreneurship was 49.8%, and the pass rate for attitudes towards the school continuing to carry out innovation and entrepreneurship related activities was 23.8%. Practice: the pass rates for participation in scientific research and academic activities and social practice, voluntary cultivation of innovation ability and self-employment were 8.5%, 62.9%, 11.9% and 27.3%, respectively. The pass rate of senior grades was higher than that of junior grades (P=0.001). Scores for knowledge and those of attitude are positively correlated. Scores for practice and those of knowledge and attitude are positively correlated. Conclusion The higher pass rates for medical college students' attitude toward innovation and entrepreneurship activities as compared to those for knowledge and practice indicates high eagerness toward participation in innovation and entrepreneurship activities; a high rate knowledge is conducive to the cultivation of attitudes and the improvement of participation in activities. Therefore, it is necessary to strengthen the efforts in carrying out innovation and entrepreneurship activities, improve publicity and education, and promote the awareness-raising of innovation and entrepreneurship. Key words: Innovation and entrepreneurship; College students; Knowledge-attitude-practice (KAP); Influencing factors

Innovation and Self-Employment

The paper adds to the literature on innovation and employment by looking at the relationship between R&D investments and the rise of alternative work arrangements, particularly selfemployment (SE). A literature review on the determinants of the emergence of non-standard work, alternative work arrangements and self-employment if offered first. The contributions that have looked at SE in relation to innovation strategies is surprisingly limited. General trends of SE in Europe are considered. The empirical contribution is focused on the analysis of local labour markets in the UK (Travel-To-Work-Areas, TTWAs), where their initial concentration of routinized and non-routinized jobs is considered. The probability that an individual shifts from paid employment to either unemployment or self-employment over the period 2001-13, as linked to changes in R&D investments in the TTWA is empirically accounted for. Results show that overall R&D has negligible effects on the probability of workers to become selfemployed. R&D increases the probability of moving from unemployment to paid employment, especially in routinized areas, and reduces the permeability between routinised and nonroutinised workers. Also, a non-negligible increase in the probability that a routinized worker becomes SE as a result of R&D increase is found in low routinised local labour markets, but not in highly routinised areas. The paper sheds new lights on the effect of R&D on employment and self-employment in areas with different degrees of routinization, and adds to the discussion on the more general raise of alternative work arrangements in Europe by disentangling the characteristics of self-employment as resulting from R&D investments.

Las relaciones entre los sujetos del sector no estatal cubano: el socio-Trabajador por Cuenta Propia en las Cooperativas No Agropecuarias

Los gobiernos están obligados a responder a los crecientes problemas sociales que afectan sus sistemas, a través de sus ordenamientos jurídicos, introduciendo figuras como el Pluriempleo y la Pluriactividad, para evitar la paralización del desarrollo del país y garantizar la protección de los derechos de sus ciudadanos. Cuba se encuentra inmersa en un trascendental proceso de actualización del modelo económico, a raíz del 6to Congreso del Partido Comunista, que responde a la necesidad de enfrentar la crisis económica desatada a partir del llamado «Período Especial», consecuencia directa de la influencia de las situaciones que se generaron en el ámbito internacional. Como corolario de dicho proceso, el gobierno cubano determinó fomentar el desarrollo de proyectos negociales particulares o privados, individuales o colectivos, integrados en el sector no estatal de la economía. Aquí encontramos a los Trabajadores por Cuenta Propia y a las Cooperativas No Agropecuarias. Estas dos formas de gestión tienen sus regulaciones propias, donde se establecen las reglas de su funcionamiento. La legislación que regula el sector de las Cooperativas No Agropecuarias, prevé la posibilidad de que se mezclen estas dos, surgiendo relaciones especiales, las que constituyen el centro de investigación del presente trabajo: el socio- Trabajador por Cuenta Propia.Recibido: 11 junio 2018Aceptado: 09 abril 2019Publicación en línea: 22 julio 2019

Congress Finally Passes Carried Interest Legislation, But is it Enough?

ABSTRACT After numerous failed previous attempts to enact legislation taxing “carried interest” income attributable to services as compensation income versus capital gains, Congress enacted Section 1061 as part of the Tax Cuts and Jobs Act. Unlike previous proposals, which would tax carried interest income attributable to services as compensation income, Section 1061 simply reclassifies some carried interest income attributable to services as short-term capital gain. By choosing to treat carried interest income attributable to services as short-term capital gain instead of as compensation income, Section 1061 exempts such income from self-employment tax and allows taxpayers to offset such income with an unlimited amount of short-term capital losses. This paper reviews the requirements under Section 1061 and explains several ambiguities created by the new law. In addition, this paper examines whether Section 1061 follows sound tax policy. The authors find that Section 1061 does not follow the tax policy concepts of equity and fairness, economic efficiency, neutrality, simplicity, or certainty. In addition, the authors find that Section 1061 will have minimal impact, as most carried interest is held longer than the required period to qualify as long-term capital gain.

Convergence Factors Affecting Quality of Life of Wage Worker and Self-employed

Convergence Factors Affecting Quality of Life of Wage Worker and Self-employed

The Self-employed and Preference for the Speed of Minimum Wage Hike -Focused on the Moderating Effect of Income Class-

The Self-employed and Preference for the Speed of Minimum Wage Hike -Focused on the Moderating Effect of Income Class-

Self-employment and poverty in developing countries

Self-employment and poverty in developing countries

The Effect of Franchise Start-up and Competition Structure on Self-Employment’s Profit

The Effect of Franchise Start-up and Competition Structure on Self-Employment’s Profit

Self-employment: a promising agenda for IHRM research

The main aim of this article is to present a theoretical model of applying HRM practices in the context of the self-employed (SE). According to recent studies and labour market data, the share of the self-employed in total employment is increasing. This may result from both changes in the business environment and attitudes to work. Running one's own business or being a self-contractor has become a promising alternative to contract employment. More and more, both young and experienced people choose this form of occupational activity for the higher earnings, career development and the work-life balance it affords. The article presents HRM as an important competency of the self-employed. That is followed by research designed to verify the interdependence between the level of HRM competency and business performance as well as SE employability.

Failure to Contribute: An Estimate of the Consequences of Non- and Underpayment of Self-Employment Taxes by Independent Contractors and On-Demand Workers on Social Security

Over the past ten years, companies such as Uber, Etsy, Lyft, Airbnb, Care.com and Rover.com have become household names by connecting service providers and sellers with consumers online and through app-based programs. And this work is projected to continue to grow, along with the technology-enabled convenience of accessing goods and services through apps on smartphones in this new sector of the economy (referred to as the “On-Demand Economy” in this Report). Although it is not new that self-employed workers have tax compliance and reporting issues, the existing reporting rules applicable to most workers earning income working with On-Demand Economy platforms (e.g., Uber, Airbnb, Etsy) substantially increase the likelihood that these taxpayers fail to contribute to Social Security and Medicare through payment of Self-Employment tax (SE tax). This Report sheds light on the Social Security implications of the current federal tax rules for independent workers generally, and in particular, workers earning income through occupations occurring in the On-Demand Economy through estimating the population and earnings of these workers using the U.S. Census Bureau redesigned Survey of Income and Program Participation (SIPP). Ultimately, we found that: • According to SIPP, approximately 7.1 million individuals were Independent Contractors and 3.12 million individuals were On-Demand Workers in 2014. • Using SIPP data, we estimate the collective earnings of Independent Contractors were approximately $204.1 billion dollars 2014, while On-Demand Workers collectively earned approximately $35.97 billion dollars in 2014. • Based on our review of SIPP data and existing measures of misreporting self-employment income, we estimate at least 3.1 million Independent Contractors underreported self-employment income in 2014. This underreporting would result in approximately $4.84 billion in unpaid SE tax, with approximately $3.92 billion constituting non-payment of Social Security contributions. • Using SIPP as well as existing research on tax compliance and information reporting for On-Platform workers and the self-employed, we estimate that as much as $2.51 billion in unpaid SE tax by On-Demand Workers in 2014. This translates to approximately $2.03 billion not paid into Social Security in 2014. • Our estimates of likely additional SE Tax owed by Independent Contractors generally and, more specifically by workers in the On-Demand Economy due to current information reporting rules, directly undermines efforts to fund Social Security and could translate to lower Social Security benefits for these workers upon retirement. While our estimates are illustrative rather than definitive, they are intended to highlight the immediate need for (i) additional research on the tax compliance of these workers; and (ii) legislative action to combat extensive underreporting of SE tax by these populations. The research on measuring these workers is dynamic, but there appears to be consensus that On-Demand Workers are a population that is hard to measure in terms of size, composition and earnings. However, even with conservative estimates on the underpayment of SE tax, there remains a significant—if not multi-billion dollar—probability that millions of the workers we estimated are not paying into Social Security. This a particularly acute problem for women, who tend to have greater dependency on Social Security and lower contributions over the course of their working lives. And this problem will continue to grow along with the digitizing of the cash economy. However, there are limited steps Congress can take to modernize information reporting, update quarterly-estimated payment requirements and to require distribution of tax guidance to help address these issues and further support the solvency of Social Security.

우리나라 영세자영업자 증가의 원인 : 탈공업화와 영세자영업자의 관계를 중심으로

한국의 노동시장에서 자영업자는 높은 비율을 차지하고 있다. 그리고 산업화가 진행되면서 감소하였던 취업자 대비 자영업자 비율은 90년대 들어서면서 그 추세가 바뀌는데 본 논문은 자영업의 영세성이 심화되었기 때문에 추세가 바뀌었다고 가정하고 그 원인을 탈공업화에 따른 일자리 감소, 한·중 수교, 금융자유화로 두고 있다. 이는 영세자영업 문제가 외환위기 이후 나타났다고 하는 기존의 연구와 상반되는 주장이다. 한국의 탈공업화는 미국, 일본 등 선진국보다 그 속도가 빠른데 이는 ‘압축적 공업화와 수출, 대기업 위주의 경제성장 방식’ 때문이다. 국가주도의 압축적 공업화는 경제적 불공정성을 만들었고, 수출과 대기업 위주의 경제성장방식은 이를 더욱 악화시켰다. 불공정한 경제상황에서 탈공업화가 나타나자 일자리 감소, 소득불평등 악화, 수출의존도 상승, 소득불평등이 악화되는 악순환이 만들어졌다. 그와 함께 1992년 체결된 한·중 수교는 이를 더욱 심화시켰으며, 이러한 상황에서 일자리를 잃은 많은 노동자들은 반강제적으로 자영업자가 되었다. 한편, 경제성장이 둔화되자 정부는 이에 대한 대응으로 금융자유화 정책을 펼치게 되는데 금융자유화는 일시적으로 경제성장률을 회복시켜주고 영세자영업자의 생존율을 높여주었다. 하지만 무분별한 규제완화와 금융감독시스템이 미비한 상태에서 진행한 금융자유화 정책은 결국 1997년 외환위기를 일으킨다. 정부는 외환위기 이후 실업률을 낮추기 위해 ‘창업’을 지원하였고, 대출을 용이하게 해주었다. 그리고 그 결과 자영업자의 수는 더욱 늘어나게 된다. 본 논문은 이러한 해석을 바탕으로 실증분석을 하였으며, 분석 결과 탈공업화가 심화될수록 영세자영업자 비율이 증가한다는 것을 확인하였다.

Women’s empowerment through self-employment in tourism

Women’s empowerment through self-employment in tourism

Tax refunds and income manipulation: evidence from the EITC

Welfare programs are important for reducing poverty but create incentives for recipients to maximize their income by either reducing labor supply or manipulating taxable income. In this paper, we quantify the extent of such behavioral responses for the Earned Income Tax Credit (EITC) in the US. We exploit that US states can set top-up rates, which means that, at a given point in time, workers with the same income receive different tax refunds in different states. Using event studies as well as a border pair design, we document that a raise in the state-EITC leads to more bunching of self-employed tax filers at the first kink point of the tax schedule. While we document a strong relationship up until the Great Recession in 2007, we find no effect thereafter. These findings point to important behavioral responses to what is the largest welfare program in the US.

Tax Refunds and Income Manipulation Evidence from the EITC

Welfare programs are important for reducing poverty but create incentives for recipients to maximize their income by either reducing labor supply or manipulating taxable income. In this paper, we quantify the extent of such behavioral responses for the Earned Income Tax Credit (EITC) in the US. We exploit that US states can set top-up rates, which means that, at a given point in time, workers with the same income receive different tax refunds in different states. Using event studies as well as a border pair design, we document that a raise in the state-EITC leads to more bunching of self-employed tax filers at the first kink point of the tax schedule. While we document a strong relationship up until the Great Recession in 2007, we find no effect thereafter. These findings point to important behavioral responses to what is the largest welfare program in the US.

Self-employment. The Case of Spain

Self-employment. The Case of Spain

(A Study on the Retirement Preparation and Life Satisfaction of the Pre-Elderly Self-Employed Workers)

Korean Abstract: 본 연구에서는 노후준비에 취약한 50대 예비노인 자영업자를 대상으로 그들의 노후준비 실태를 파악하고, 노후준비 충분성 인식 등 제반 변수들이 이들의 삶의 만족도에 미치는 영향력을 살펴보았다. 본 연구의 목적 달성을 위해 서울 및 경기지역에 거주하는 50대 예비노인 자영업자 250명을 대상으로 질문지를 이용하여 설문조사를 실시하였으며, 부실 기재되거나 훼손된 설문지를 제외한 218 사례가 최종분석에 사용되었다. 분석변수로는 인구사회학적 특성(성별, 배우자유무, 교육수준, 월평균 가계소득, 사업소득, 자영업 유형, 교육수준, 신체적 건강상태), 심리적 특성(자아존중감, 우울감), 노후준비 충분성 인식, 삶의 만족도 등이 포함되었다. 주요 연구결과는 다음과 같다. 첫째, 조사대상자 중 30% 이상이 노후준비를 하고 있지 않은 것으로 나타났으며 노후준비를 한다고 응답한 사람들은 주된 노후준비방법으로 국민연금을 가장 많이 선택하였으나 5명중 2명은 국민연금에 가입하지 않았고, 자신들의 노후준비가 충분하다고 응답한 사람도 10명중 1명 정도였다., 둘째, 자영업자의 삶의 만족도 수준은 5점 기준 3.29로 보통수준으로 나타났으며, 이러한 삶의 만족도와 관련된 변수들의 상대적 영향력을 위계적 다중회귀분석을 통해 살펴본 결과, 자아존중감(β = .37), 노후준비 충분성(β = .28) 신체적 건강상태(β = .13), 우울감(β = -.16), 자영업유형중 판매직에 종사하는 경우(β = .12)의 순으로 삶의 만족도에 미치는 상대적 영향력이 큰 것으로 나타났다. 즉 자영업자의 인구사회적 특성뿐만 아니라, 심리적 변수와 노후준비 충분성 인식 등이 미치는 영향력이 검증되어 개인의 삶의 만족도가 객관적인 조건뿐만 아니라 심리적 요소와 인식수준에 의해서도 영향을 받음을 확인할 수 있었다. English Abstract: The purpose of this study was to find out the variables affecting on the life satisfaction of the pre-elderly self-employed workers. The data were drawn from 218 samples living in Seoul and Kyunggi area. The major results were as follows: First, approximately 30% of the respondents reported that they had prepared for their old age. About 60% among those who had prepared for their old age reported public pension as their major preparation method and only 17% reported private pension as their major preparation method. Over the half of them recognized that the level of retirement preparation was not sufficient. Second, the average level of life satisfaction was 3.29 of a 5 point scale, showing that pre-retired self employees had a moderate level of life satisfaction. Third, physical health status, business type(sales), self-esteem, depression, and the perceived preparation sufficiency were the variables affecting the level of life satisfaction. Based on these results, the implications for practitioners were discussed.

Self-employment effects on regional growth: a bigger bang for a buck?

This paper estimates the net employment spillovers from changes in self-employment (SE) and compares them to spillovers from changes in wage and salary (WS) employment using US county-level data. Our findings offer a policy-relevant perspective on the relative importance of SE and WS employment and help bridge two entrepreneurship research traditions. Our estimated effects of self-employment, at the margin, are substantially larger than identical effects of paid employment. This supports the literature that points to a special role played by self-employed businesses in economic growth. At the same time, the little attention given to SE as a potential engine of growth among policymakers and scholars can be explained, at least in part, by the relatively small total economic impact of self-employment stemming from its small share of the economy. In an austere fiscal environment, however, spending a dollar to stimulate SE is likely to have greater returns as opposed to stimulating WS employment, assuming the costs of adding one SE and one WS job are comparable.

Robert Frederick Symes (1939–2016)

Robert Frederick Symes, known universally as Bob, has been a prominent figure in British mineralogy and geology for around 50 years. I first met Bob in 1982 when he came to stay with us at our home in Dudley as a guest speaker to the West Midlands Mineral and Gemstone Society, of which I was then Secretary. I had contacted the late Peter Embrey at the Natural History Museum (NHM) to invite him to come and talk to us about his involvement in the production of a facsimile reprint of Greg and Lettsom's classic 1858 work on the mineralogy of Great Britain and Ireland. Peter had declined the invitation owing to pressure of work on “ the book in which I am currently engaged on the minerals of Cornwall and Devon ”, but kindly delegated the task to Bob. In later years, Bob told me that the overdue publication of the book led to the Museum authorities chasing Peter for a commitment to a completion date, whereupon Peter, not always known for his tact and diplomacy, apparently said “ get Symes to write it and I'll turn it into English!” Bob contributed the geology chapter and some other sections of the book, and provided a stimulus for Peter. Whatever the process, we are all grateful to the pair of them for seeing it through to eventual publication. Bob was born on 10th February 1939 in Harrow, London, and grew up in Eastcote, Pinner. His father was a self-employed builder in Chelsea, and his parents were both born in Chelsea. In 1948, Bob's father had arranged to take Bob to the summer Olympics at Wembley Stadium, and whilst waiting for the train, one of the athletes came and sat down next to Bob. He was just thrilled, and especially so …

Entrepreneurship, Microenterprise, and Public Policy in Cuba: Promotion, Containment, or Asphyxiation?

And thus it was with many things that I’m not going to repeat: commerce, market-determined prices in certain sectors, for certain activities; a proliferation of self-employment.… And these are the opinions we have had about these things over the years, never imagining that we would have to learn to live with them for a period of time that is very difficult to predict, and that depends on many factors. Fidel Castro, 23 April 1997 During the approximately 30 years in which the exercise of entrepreneurship in a market-oriented setting was effectively prohibited, Cuba actually created a nation of entrepreneurs. Although the intention was to convert Cuba into a “school for socialism,” the reality is that Cuba has also been, in part, a school for market-oriented entrepreneurship. This, indeed, is one of the more surprising and significant paradoxes of the Cuban Revolution. The nature of Cuba’s planned economy itself has inadvertently promoted widespread entrepreneurial values, attitudes, behavior, and savoir-faire, as citizens of necessity have had to buy and sell, truck and barter, hustle and “network” to improvise solutions to their personal economic problems. While entrepreneurial talents have developed broadly among the population, their exercise, until 1993, was restricted to the important but low-level everyday tasks of sustenance and survival, often carried out in the shadow or underground economy or on the black market. But when the space available for entrepreneurial activity was increased with the liberalization of microenterprise beginning in September 1993, the expansion and diversification of microentrepreneurial activity was impressive.