2023-09-28 14:46:10 +00:00
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abstract: 'Many people in the United States have achieved economic stability
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through self-employment and are often seen as embracing the
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entrepreneurial spirit and seizing opportunity. Yet, research also
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suggests that self-employment may be precarious for many people in the
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lower socioeconomic strata. Drawing on a unique dataset that combines
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longitudinal survey data with administrative tax data for a sample of
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low- and moderate-income (LMI) workers, we bring new evidence to bear on
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this debate by examining the link between self-employment and economic
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insecurity. Overall, our results show that self-employment is associated
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with greater economic insecurity among LMI workers compared with
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wage-and-salary employment. For instance, compared with their
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wage-and-salary counterparts, the self-employed have 78, 168, and 287
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percent greater odds of having an income below basic expenses, and
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experiencing an unexpected income decline and high levels of income
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volatility, respectively. We also find that differences in financial
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endowment and access to health insurance are key drivers in explaining
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the relationship between employment type and economic insecurity, as
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being able to access \$2,000 in an emergency greatly lowers the odds of
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budgetary constraint, whereas lack of health insurance increases those
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odds. These findings suggest that formal work arrangements with wages
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and benefits offered by an employer promotes greater economic stability
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among LMI workers compared with informal work arrangements via
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self-employment. We discuss implications of these results for future
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research and policy initiatives seeking to promote economic wellbeing
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through entrepreneurship.'
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affiliation: 'Auguste, D (Corresponding Author), Florida Atlantic Univ, Dept Sociol,
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777 Glades Rd, Boca Raton, FL 33431 USA.
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Auguste, Daniel, Florida Atlantic Univ, Dept Sociol, 777 Glades Rd, Boca Raton,
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FL 33431 USA.
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Roll, Stephen; Despard, Mathieu, Washington Univ, George Warren Brown Sch Social
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Work, Ctr Social Dev, St Louis, MO 63130 USA.
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Despard, Mathieu, Univ N Carolina, Dept Social Work, Greensboro, NC 27402 USA.'
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author: Auguste, Daniel and Roll, Stephen and Despard, Mathieu
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author-email: augusted@fau.edu
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author_list:
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- family: Auguste
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given: Daniel
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- family: Roll
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given: Stephen
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- family: Despard
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given: Mathieu
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da: '2023-09-28'
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doi: 10.1093/sf/soab171
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earlyaccessdate: FEB 2022
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eissn: 1534-7605
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files: []
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issn: 0037-7732
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journal: SOCIAL FORCES
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keywords-plus: 'ALTERNATIVE WORK ARRANGEMENTS; UNITED-STATES; INEQUALITY;
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ENTREPRENEURSHIP; DETERMINANTS; FAMILY'
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language: English
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month: 2022 FEB 7
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number-of-cited-references: '65'
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orcid-numbers: Auguste, Daniel/0000-0002-7128-1079
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papis_id: 1cab0176477b0bbb6cc2bb489a619574
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ref: Auguste2022precarityselfemploym
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times-cited: '0'
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title: The Precarity of Self-Employment among Low- and Moderate-Income Households
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000792127500001
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usage-count-last-180-days: '3'
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usage-count-since-2013: '8'
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web-of-science-categories: Sociology
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year: '2022'
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