Self-Employment in Times of Crisis: The Case of the Spanish Financial Crisis

Abstract

While some researchers have suggested that the self-employment (SE) sector is a haven during a financial crisis, others believe that SE is not necessarily the desired outcome, but an indicator that the labor market is tightening for some groups. Few researchers have compared the SE sector before and after the occurrence of a significant financial crisis, especially in developed countries. This paper analyzes the determinants of entry into self-employment during the 2008 Spanish Crisis. Using data from the Encuesta de Presupuesto Familiar (EPF), results show that although the rate of SE did not experience a significant change during this time, the crisis affected people differently based on gender, with females being more affected than males. Results also suggest differences between Comunidades Autonomas in how the self-employment sector behaved during the crisis.

Initiatives Addressing Precarious Employment and Its Effects on Workers’ Health and Well-Being: A Systematic Review

“…Several studies found that women, racialized groups, migrants, youth, and individuals with lower education are frequently found in both NSE and PE [ 12 , 50 , 51 ]. A study examining the effect of the 2008 crisis in Spain noted that the overall downward trend in self-employment was more pronounced for women [ 52 ]. Other research showed that (i) the prevalence of self-employment is higher for men [ 53 , 54 ], older workers and some immigrant groups [ 54 ], (ii) the reasons for opting for self-employment vary between genders [ 53 , 55 ], and (iii) the opportunities to succeed in entrepreneurial roles are impacted by factors such as gender and race [ 53 ].…”