• Last 1 Month
    • Last 2 Months
    • History

Self-employment increases when wages are up, new study shows

Thursday 28th May, 2015
Comments
Limited Company
A new study has revealed a link between self-employment levels and wages in parts of the UK. 

Research undertaken by the universities of Sussex and Sheffield found that entrepreneurship tends to be more common in areas that are economically successful and people earn higher wages. 

It was revealed that self-employment and limited company working increased from six per cent to around 13 per cent between 1971 and 2011, but there were considerable regional variations across the nation.

David Storey, professor of enterprise at the University of Sussex and co-author of the research, stated: "Governments have used public money to raise rates in low-enterprise areas in the belief that this would lead to wealth and job creation, but it hasnt happened. 

"Instead, entrepreneurial activity has changed in line with the economic prosperity of the area. This seems to suggest that entrepreneurship is a response to, rather than a cause of, wealth creation."

All areas of London were found to have experienced a rise in self-employment and entrepreneurship in the 40-year study period, while coastal towns such as Blackpool and Bournemouth saw a fall. 

The study also looked into the relationship between immigration and self-employment. In both 1971 and 1981, areas with higher numbers of migrants were found to have fewer entrepreneurs. However, in 1991, 2001 and 2011 immigrants were more likely to live in areas with a high level of self-employment.

Professor Storey said these figures indicate that the people coming to live in the UK are increasingly favouring entrepreneurship as a means of engagement. The research also revealed parts of the country where the number of people aged between 55 and 64 is growing are likely to see an increase in self-employment.


Recent news

Top 20 most in-demand contractor skills revealed

08/05/2018 00:00:00
Comments
Posted by
Blockchain has been named the number one most coveted contractor and freelancer skill of the moment in a new report from Upwork.

Why contracting could be the answer to presenteeism pressure

23/04/2018 00:00:00
Comments
Posted by
UK workers who feel pressured by a culture of presenteeism may benefit significantly from becoming limited company contractors, new research...

Permanent employment 'won't be the norm for much longer'

16/04/2018 00:00:00
Comments
Posted by
Only 29 per cent of recruiters believe that permanent job roles will continue to be the norm in the future, according to new survey results.