The transition behaviour of self-employed in the UK and the role of unionisation during 2008 economic downturn

Abstract

Purpose This study aims to examine the transitions of workers between paid employment and self-employment before and after the 2008 financial crisis, focusing on the drivers behind increased self-employment in the UK and the role of trade union membership in these transitions.

Design/methodology/approach Using a long-running panel data set, the labour market is divided into three groups: sustained self-employed, always employed and those who transition between the two. The framework assesses the influence of union membership on these transitions.

Findings Long-term paid employees, rather than those transitioning between employment types, are driving increased self-employment. Union membership appears more attractive post-crisis to paid employees, but disengagement from unions may be linked to transitions towards self-employment.

Originality/value This research highlights the nuanced role of trade unions in employment transitions and contributes to understanding labour market dynamics post-financial crisis in the UK.