Self-employment and labor market risks

Arbeitspapier

I study the labor market risks associated with being self-employed. I document that the self-employed are subject to larger earnings fluctuations than employees and that they frequently transition into unemployment. Given that the self-employed are not eligible to unemployment insurance, I analyze the provision of benefits targeted at these risks using a calibrated search model with (i) precautionary savings, (ii) work opportunities in paid and self-employment, and (iii) skill heterogeneity. This exercise suggests that extending the current U.S. unemployment insurance scheme to the self-employed comes with a clear increase in the transition rate from self-employment to unemployment and an unequal benefits-tocontributions ratio across skill groups. At the calibrated parameters, the self-employed in the middle of the skill distribution lose welfare.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Staff Report ; No. 1085

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Particular Labor Markets: General ; Unemployment: Models, Duration, Incidence, and Job Search ; Unemployment Insurance; Severance Pay; Plant Closings
• Thema: self-employment ; unemployment insurance ; earnings dynamics

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Audoly, Richard
• Ereignis: Veröffentlichung
• (wer): Federal Reserve Bank of New York
• (wo): New York, NY
• (wann): 2024

Weitere Informationen

• DOI: doi:10.59576/sr.1085
• Handle: http://hdl.handle.net/10419/284045
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ