Female Self-Employment and Children: The Case of Sweden

39 Pages Posted: 4 Oct 2014

See all articles by Pernilla Andersson

Pernilla Andersson

Stockholm University - Swedish Institute for Social Research (SOFI)

Abstract

Previous studies, mostly from Anglo-Saxon countries, find a positive correlation between the presence of young children in the household and self-employment probabilities among women. This has been seen as an indication of women with young children choosing self-employment as a way of balancing work and family commitments. This paper studies the relationship between children and female self-employment in a country with family friendly policies and a generous welfare system: Sweden. The initial hypothesis is that we will not find evidence of a positive effect of children on self-employment among Swedish women since there are other institutions in place aiming at facilitating the combination of work and family. Using Swedish register data for the period 2004-2008 we do, however, find that the presence of young children increases the probability of choosing self-employment also among Swedish women. The effect is strongest for women with very young children, 0-3 years of age. These results also hold in a panel data model that takes individual unobserved heterogeneity into account. We also analyze time-use data and find, contrary to what has been found in many other countries, that self-employed women spend more, or as much, time on market work than wage-earning women. This raises doubts about whether women in Sweden chose self-employment as a way of balancing work and family commitments. We suggest an alternative interpretation which is that women who chose self-employment while the children are young in fact are women with strong preferences for market work.

Keywords: work, family, self-employment, fertility

JEL Classification: J22, L26, J13

Suggested Citation

Andersson, Pernilla, Female Self-Employment and Children: The Case of Sweden. IZA Discussion Paper No. 8486, Available at SSRN: https://ssrn.com/abstract=2505348 or http://dx.doi.org/10.2139/ssrn.2505348

Pernilla Andersson (Contact Author)

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

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