Testing the Differential Impact of COVID-19 on Self-Employed Women and Men in the United Kingdom

39 Pages Posted: 30 Mar 2021

See all articles by Darja Reuschke

Darja Reuschke

University of Southampton

Andrew Henley

Cardiff Business School, Cardiff University; IZA Institute of Labor Economics

Elizabeth Daniel

The Open University - Business School

Victoria Price

University of Southampton

Abstract

This paper investigates whether the female self-employed are more affected by the COVID-19 crisis than the male self-employed using longitudinal data four months following the first 'lockdown' in the UK. We specifically test the role of family/social, economic and psychological factors on gendered differential impact. We find that self-employment exits are not gendered but women are more likely to experience reductions in hours worked and earnings. This greater adverse impact on women's working hours and earnings is despite family responsibilities and home-schooling, industrial gender segregation and women's greater propensity to run a non-employing business and to work part-time. However, lower attitude to risk in women is associated with lower risk of reduction in earnings. Policy needs to look beyond business exits when considering crisis support for the self-employed.

JEL Classification: J16, J22, L26

Suggested Citation

Reuschke, Darja and Henley, Andrew and Daniel, Elizabeth and Price, Victoria, Testing the Differential Impact of COVID-19 on Self-Employed Women and Men in the United Kingdom. Available at SSRN: https://ssrn.com/abstract=3813643 or http://dx.doi.org/10.2139/ssrn.3813643

Darja Reuschke (Contact Author)

University of Southampton ( email )

Highfield, Southampton
United Kingdom

Andrew Henley

Cardiff Business School, Cardiff University ( email )

Aberconway Building
Colum Drive
Cardiff, CF10 3EU
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Elizabeth Daniel

The Open University - Business School ( email )

Milton Keynes, MK6 7AA
United Kingdom

HOME PAGE: http://www.open.ac.uk/oubs

Victoria Price

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

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