Self-Employment Among the Poor: Does It Pay Off?

We find that in a typical year, between 2010 and 2019, there were an estimated 887,778 self-employed poor people in the U.S. The self-employed poor (vs. poor wage/salary workers) are less likely to belong to racial/ethnic minority groups, more educated, and more likely to be homeowners. Self-employm...

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Publicado en:Journal of Poverty Vol. 29; no. 2; pp. 92 - 110
Autores principales: Fisher, Monica, Lewin, Paul A., Wornell, Emily J.
Formato: Artículo
Publicado: Taylor & Francis Ltd Feb/Mar2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Self-Employment Among the Poor: Does It Pay Off?
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          Fisher, Monica
          Lewin, Paul A.
          Wornell, Emily J.
        affil:
          Agricultural Economics and Rural Sociology, University of Idaho, Moscow, USA
          International Maize and Wheat Improvement Center, Nairobi, Kenya
          Agricultural Economics and Rural Sociology, University of Idaho, Boise, USA
          Indiana Communities Institute, Ball State University, Muncie, USA
      su:
        Vocational guidance
        Poor people
        Self-employment
        Minorities
        Freelancers
        Racial minorities
      sug:
        subj:
          Vocational guidance
          Poor people
          Self-employment
          Minorities
          Freelancers
          Racial minorities
      keyword:
        Earnings
        occupational choice
        poverty
        self-employment
        wage/salary work
      ab: We find that in a typical year, between 2010 and 2019, there were an estimated 887,778 self-employed poor people in the U.S. The self-employed poor (vs. poor wage/salary workers) are less likely to belong to racial/ethnic minority groups, more educated, and more likely to be homeowners. Self-employment does not appear to pay off for America's poor. The poor experience an entrepreneurial earnings penalty (the loss in earnings being self-employed vs. working for wages) ranging between 12% and 43%. Future research is needed to understand why poor people choose self-employment, despite lower earnings on average than in wage work.
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      custom: Copyright of Journal of Poverty is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use.
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