SELF-EMPLOYMENT AND LABOR MARKET RISKS

• 成果类型: Article
• 署名作者: Audoly, Richard
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12732
• 发表日期: 2025
• 页码: 661-686
• 关键词: unemployment-insurance; liquidity constraints; job search; consumption; benefits

摘要

I study the labor market risks associated with self-employment. I document that the self-employed are subject to larger earnings fluctuations than employees and frequently transition into unemployment. 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. Extending the U.S. unemployment insurance scheme to the self-employed increases the transition rate from self-employment to unemployment and yields an unequal benefits to contributions ratio across skill groups. At the calibrated parameters, the self-employed in the middle of the skill distribution lose welfare.