• Media type: E-Article
  • Title: ‘Genuine’ or ‘Quasi’ Self-Employment: Who Can Tell?
  • Contributor: Kösters, Lian; Smits, Wendy
  • imprint: Springer Science and Business Media LLC, 2022
  • Published in: Social Indicators Research
  • Language: English
  • DOI: 10.1007/s11205-021-02794-5
  • ISSN: 0303-8300; 1573-0921
  • Keywords: General Social Sciences ; Sociology and Political Science ; Arts and Humanities (miscellaneous) ; Developmental and Educational Psychology
  • Origination:
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  • Description: <jats:title>Abstract</jats:title><jats:p>In many industrialised countries, including the Netherlands, the share of solo self-employed workers has strongly increased in recent years. This development is subject to a lot of public debate as it is feared that this increase is caused by ‘quasi’ self-employment. There still seems to be little consensus, however, on what constitutes ‘genuine’ self-employment and what not. In this article we present a theoretical framework for ‘quasi’ solo self-employment and discuss how the various indicators for ‘quasi’ self-employment that are used in the literature fit in this framework. We then compare the outcomes of different indicators by applying them to solo self-employed workers in the Netherlands. The data used for the analysis are taken from the Dutch Labour Force Survey (NL-LFS) 2017 complemented with the European Labour Force Survey (EU-LFS) ad hoc module 2017 on self-employment. Our results show that about 7% of the solo self-employed workers is dependent on one client. Furthermore, almost 20% of all solo self-employed had an involuntary start. The correspondence between dependency and involuntariness is very low: less than 2% of the solo self-employed workers are both dependent and involuntary. Both dependency and voluntariness are related to the fiscal and legal status of the solo self-employed workers and to the type of work activities. Solo self-employed workers that own their own business and who mainly sell products are less likely to be dependent and/or involuntary self-employed compared to those who do not own a business and/or offer services. Dependency is hardly related to the unfavourable outcomes of solo self-employment. Involuntariness, on the contrary, seems to have some impact on outcomes. Those who became self-employed because they couldn’t find a job as an employee have a higher probability to be unsatisfied with their job, to have financial problems or problems due to a lack of work or a low income. Nevertheless even among the involuntary solo self-employed workers, the majority does not report negative outcomes.</jats:p>