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

Abstract

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.