Two Paths to Self-Employment?

Abstract

This article contrasts the sociodemographic characteristics of self-employed women and men in both incorporated and unincorporated businesses. An analysis of 1980 Public Use Microsample (PUMS) data reveals that neither Schumpeter's (1934) “default” theory nor Knight's (1933) “career” theory offers an adequate explanation of women's self-employment. Women's family characteristics, which represent both constraint and choice, are significant predictors of women's self-employment. Human capital characteristics, including education, age, and past work experience are significant predictors of both women's and men's self-employment status. Self-employment is presented as a form of contingent work, which affords women schedule flexibility.