Issue Season
Spring/Fall
Document Type
Refereed Article
Abstract
Self-employment is often viewed as a more desirable work arrangement than working as an employee for a firm. Women are pushed into self-employment due to organizational factors, such as a shrinking workforce or limited job opportunities, while being attracted to self-employment by the many psychological and social benefits (e.g., independence, flexibility, work-life balance, job satisfaction). Despite more women moving into self-employment, this type of employment still has different financial consequences for men and women. This article investigates whether a pay gap exists for self-employed women after controlling for industry, occupation, and hours worked and seeks to quantify the gender wage gap for the self-employed. A sample of 467 self-employed independent contractors in the United States was examined from the 2008 National Study of the Changing Workforce. The results indicate a large financial disparity between self-employed women and men. On average men earned $54,959 as compared to women who earned on average $28,554. Regardless of the parity in education, work experience, number of hours worked, or occupations, women earn less than men in self-employment. Findings suggest the existence of the glass cage—a phenomenon whereby self-employed women earn significantly less than self-employed men with limited abilities to narrow the economic inequality.
Recommended Citation
Lawter, Leanna; Rua, Tuvana; and Andreassi, Jeanine K. Ph.D.
(2016)
"The Glass Cage: The Gender Pay Gap and Self-Employment in the United States,"
New England Journal of Entrepreneurship: Vol. 19:
No.
1, Article 3.
Available at:
https://digitalcommons.sacredheart.edu/neje/vol19/iss1/3
Included in
Entrepreneurial and Small Business Operations Commons, Gender and Sexuality Commons, Work, Economy and Organizations Commons
