ABSTRACT
The rate at which women have entered self-employment has increased dramatically in recent decades. The self-employment rate increased 45 percent from 1970 to 1983 (Becker 1984). While the number of self-employed women is far below that of men, their percentage in the work force has increased five times faster than that of self-employed men and more than three times faster than that of female wage and salary workers. Self-employed women tend to be older, married, slightly better educated, white or Asian, and more concentrated in female-dominated personal-service and retail-sales industries. Although all self-employed workers on average work longer hours, women are more likely to work part-time and to earn less than their wage and salary counterparts (U.S. Small Business Administration 1986). Despite these economic disadvantages, self-employment may be attractive for women who have few employment options or require more flexibility in their work lives. This is especially true for mothers of young children.
