The Self-employed after the COVID-19 Pandemic

Focusing on Income and Perceptions of Living Conditions

Abstract

The impact of the spread of COVID-19 on the way of working has been studied both nationally and internationally. Previous studies showed that women were more affected than men and that nonstandard and self-employed workers were more affected than those in standard employment. This paper extends these findings by showing how the impact on vulnerable groups differs within those groups during the expansion and convergence phases of the COVID-19 pandemic. Specifically, the impact of employment status and differences in occupation and education on personal income and living conditions was analyzed based on internet surveys conducted in 2021 and 2023.

The main findings of the analysis are as follows. First, although income level differed between men and women, the distributional relations between the incomes of those in standard employment, those in nonstandard employment, and those who were self-employed remained almost unchanged between the two time points. Second, the likelihood of perceiving that living conditions were worse than before COVID-19 was higher for the self-employed than for the standard-employment workers, and this trend continued. Third, comparisons of occupations among the self-employed showed no significant differences in the likelihood that self-employed workers would perceive living conditions to have worsened, although professional and technical occupations had an income advantage. On the other hand, being highly educated was found to reduce the likelihood of a worsened living situation. The results of the analysis suggest that self-employment can be a difficult working option for all but those who meet certain conditions.