You are on page 1of 47

The Fall and Rise of the Petty Bourgeoisie: Changing Patterns of Self-Employment in the Postwar United States

Author(s): George Steinmetz and Erik Olin Wright Source: American Journal of Sociology, Vol. 94, No. 5 (Mar., 1989), pp. 973-1018 Published by: The University of Chicago Press Stable URL: . Accessed: 20/05/2013 16:40
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact


The University of Chicago Press is collaborating with JSTOR to digitize, preserve and extend access to American Journal of Sociology.

This content downloaded from on Mon, 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions

The Fall and Rise of the Petty Bourgeoisie: Changing Patterns of Self-Employment in the Postwar United States'
GeorgeSteinmetz University ofChicago Erik Olin Wright University of Wisconsin-Madison

This articleexploresthe historical trajectory of the self-employed since segment of the labor forcein the UnitedStates,particularly 1940. Self-employment declinedin theUnitedStatesalmoststeadily fromthe 19thcentury to the early 1970s. Since then,it has risen ofthe in thehistorical fortunes everyyear. Explainingthisreversal is the centraltask of thisarticle.We reach four pettybourgeoisie basic conclusions:first, the reversalin the declineof the self-emand robustacrossa rangeofdefiniployedis statistically significant tionsof self-employment is nota simple rates.Second,thisreversal sincethe countercyclical responseto theincreasein unemployment middle 1970s. Third, part of the resurgence of self-employment resultsfromthe expansionof various postindustrial servicesthat tendto have higher levelsof self-employment within them.Within been any postindustrial sectors,however,therehas not generally a significant increasein self-employment. Fourth, partoftheexpansion of self-employment is explainedby an increasein self-employmentwithinmostof the traditional sectorsof the industrial economy. Thomas Jefferson ([1786] 1984, p. 580) argued 200 years ago that the prospectof self-employment justifiedwhateverdepredations accompanied indentured service and wage labor: "So desirousare the poor of Europe to get to America,wheretheymay better theircondition, that, beingunable to pay theirpassage, theywill agree to servetwo or three yearson theirarrivalthere,rather than not go. Duringthe timeof that
1 We wouldliketo thank Bill Martin and Cheryl Knobeloch for technical assistance. Rebecca Emigh,Thomas Hagelstange, Marta Tienda, Loic Wacquant,Hal Winsborough, and severalanonymous reviewers are gratefully acknowledged fortheir comments. Requests forreprints shouldbe sentto George Steinmetz, Department of Sociology, University ofChicago,1126East 59thStreet, Chicago,Illinois 60637.

? 1989 by The Universityof Chicago. All rightsreserved. .50 0002-9602/89/9405-0002$01

AJS Volume 94 Number5 (March 1989): 973-1018


This content downloaded from on Mon, 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions

Journal of Sociology American labour than clothed,and have lighter fed,better servicetheyare better they buy to workforhirea fewyearslonger, whilein Europe. Continuing a farm,marry,and enjoy all the sweets of a domesticsocietyof their AbrahamLincoln([1865] 1907, own." In the middleof the 19thcentury as the naturalrouteto individualprosp. 50) also saw self-employment in the world labors forwages "The prudentpennilessbeginner perity: then awhile,saves a surpluswithwhichto buytoolsor land forhimself, labors on his own account anotherwhile, and at lengthhires a new to helphim."And even in thewaningyearsofthe20thcentury, beginner Ronald Reaand powerful governments, in an era of large corporations Speakingat the awards ceregan extolsthe virtuesof self-employment. monyforthe National Small Business Personof the Year, Reagan reand thedruggist thatthoseshopkeepers marked:"I am vividlyreminded businessmen and and the feed storeownerand all of thosesmalltown and were also women made our town work, buildingour community, ournation.In so manyways,youheretodayand yourcolleagues building America'spioneerspirit.... You also hold represent acrossthecountry that It's in yourdreams,youraspirations future. thepromise ofAmerica's of will be moldedand shaped"(PublicPapers ofthePresidents ourfuture the UnitedStates: Ronald Reagan 1983, p. 689). is a deeplyheld ideal in Being one's own boss, being self-employed, in a nationalU.S. survey culture.As table 1 (col. 1) indicates, American of adults in the work forcein 1980, 57% of all people in the American wouldlike say thatthey ofall male workers working class and two-thirds barriers mayexistto whatever to be self-employed Moreover, someday.2 the ideal is not a completefantasy.Rather,a becomingself-employed, with has personalexperience partof theU.S. population verysignificant and data While, depending on precise definitions self-employment. in theUnitedStateswere sources,onlyabout 8%-14% ofthelaborforce at in 1980, an additional 17% have been self-employed self-employed some timeduringtheirwork lives (almost21% formen), whichmeans ofthemalelabor and a third ofthetotallaborforce, thatat leasta quarter When we turnto the backforce,eitheris or has been self-employed. 32% comefrom nearly in thelabor force, currently ground ofAmericans mostof in which the head of the householdwas self-employed families in the timewhile theywere growing up, and 46% come fromfamilies whichthe head of householdwas self-employed at least partofthetime. Finally,when Americanswere asked to describethejobs of theirthree was selfbest friends, 31% indicatedthat at least one of theirfriends ofAmericans two-thirds Whenwe takeall thesedata together, employed.
2 Thiscorroborates study suchas Chinoy's sociological research, from earlier evidence automobile factory (Chiin a midwestern aspirations from theearly1950sofworkers' noy1955,chap. 7).


This content downloaded from on Mon, 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions

PettyBourgeoisie in the labor forcehave some personal linkage to self-employment by havingexperience ofself-employment, by coming from a family in which thehead ofhousehold was self-employed, or byhavinga closefriend who is self-employed. is thusa centralpart of boththe culturaland social Self-employment fabricof Americanlife. Yet, remarkably, self-employment has received almostno systematic empiricalstudyby sociologists. When sociologists studystratification, it is rarethatself-employment is treated as a distinct question. The typicalclass schema for sociologicalstudies runs from upper-white-collar to lower-blue-collar and farmoccupations,and the self-employed are fusedwiththesecategories according to their occupational activities.3In a keywordsearch of the major recentEnglish, French,and Germanliterature in sociology, economics, and history, we were able to findonly about 20 articlesthat dealt centrally with the questionof self-employment different (as opposedto thesomewhat questionsof small businessor the "informal economy"), none of whichconstituted a rigorous statistical of the category.4 investigation The basic objectiveof thisarticleis to beginto remedy thisabsenceof itshistory systematic empirical research on self-employment byanalyzing in the UnitedStates,particularly in thepost-WorldWar II period.The articlewill revolvearounda striking feature of thetrendin ratesof selfemployment in the labor force:on the basis of the best available time series,it appearsthatbetween1940and 1973there was a virtually monotonicannual declinein the rateof self-employment in the UnitedStates, from around20% to under10%; from1973 to 1976 theself-employment ratewas basicallystable,butsincethenthere has beena slight butsteady
Goldthorpe. Goldthorpe makesa point ofdistinguishing sometypes ofself-employed from wage laborers in his occupationally based hierarchy of classes(see Goldthorpe 1980). 4 The literature specifically on smallbusinesses is muchlarger (as is theliterature on the informal economy) but has a different object. Granovetter (1984) and Rainnie (1985)deal with a paradox somewhat similar totheoneaddressed here, thepersistence of smallestablishments, whilePortesand Sassen-Koob (1987) notethe survival of smallestablishments" "very without an explanation. offering The morerecent sociological and economic literature on theself-employed includes: Baudelot, Establet, and Malemort (1974); Bechhofer and Elliott(1978, 1981, 1985); Becker(1984); Berger (1981);Bertaux and Bertaux-Wiame (1981);Bogenhold (1985);Bregger (1963);Burris (1980); Cuneo (1984); Curranand Burrows(1986); Dale (1986); Daly (1982); Fain (1980); Gagliani (1981); Hagelstange(1986, 1988); Leppert-Fogen (1974); Linder (1983);Mayer(1977); Ray (1975); Scase and Goffee (1980, 1982);Van Regemorter (1981);Weiss(1984);and Zarca (1979).In addition, there are a number ofhistorical studies on theUnitedStatesand Europedealingcentrally withtheself-employed in general (i.e., notfocusing on specific occupations): Blackbourn (1984,1985);Crossick (1978);Geiger (1932);Gellately (1974);Grunberg (1932);Haupt (1985);Philips (1962); Volkov(1978);and Winkler (1972).
3One partial exception to thisis thework on stratification and socialmobility ofJohn


This content downloaded from on Mon, 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions

t-0 _ o m 0 o z C~~~4 eo_ b 4 t X t m >Z go oO 31.=: 3 g ~~No " C" N ON o in (L o =in t- )t 0. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .4 X: t- C1 -I X B -4 i E976 41 M C.t~Cl 6 - l This content downloaded from 186.. z ? d m 8a ^ 00 ~~00 %0 %0 %0 %0 9o %0 00 00 z 0 O>so S~~~~~~~~~~1 Q a~~~~~~L cn oV C/) cl C" v) C -q >O0 l tC.88.06 U7 11 c U7 c .= *- * .97 on Mon.6.

0 00 ce 11. 00 cl. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . ci cl..0 44 bo ce tm ce 0 cd ce 0 . CD 110 cn cn O C\ 11- 110 . 116 4 \. C. Ci ll Ci Ci Ci C.6. 4 06 0 C14 110 00 CIF) ll Ci tll O C O 1-4 00 Ull) r- --l C. 11. 116 Ull) C o ce Q bo 0 Ci -4 eq U C". 4. 0 bO C\ 00 '1: C! r.) (DN (14 0 "D 00 t- CO') blo o ce ce t00 110 ItC\ S 00 r.O C 00 tCIO-) -4 ll Ci 11.t-4 O m . Ow k 00 (14 -4 -4 CIO..0 Cd Cd r. Cl) a 0 0 r.1- .-a 110 C. o o -+j 0 0 0 r. Z-Z 00 cl.97 on Mon.) CIO.00 0 oo C C a 0 m0 o -. o o 0 977 This content downloaded from 186.00 O Ci tl ll C-.1.'v w bO bO 02 o 0 0 a o 0 V O. W bo ho 0 t bo ce bo v v bO ed o Q.0 : -4 -4 In 40.1- (7 0 . u 4.) C\ li C14 r- CD C rl ll O 0 bo 41u o 0 Cd 0 O 11- C r.0 ... ci U") eq or) C\ C) eq C! .88.o cl.1- Ci ll 110 C\ 0 Ci ll bo .0 0 IV bo 4.. C14 00 14 C.

often changingownershippatterns capital. -U.88.S. 1948-84.Finally.. Labor.6. . 1948-1984 21 19 X SELF-EMPLOYED0 UNPAID FAMILY AS % OF ADULTPOPULATION MEMBERS .What 15%-20% higher thanit had beenjust a little a reis the explanationforthis ratherdramaticchange?Does it reflect in theAmerican sincetheearly1970s?Is it economy sponseto stagnation an aspect of the transition to a "postindustrial" economy. This will be followedin SectionII by a discussionof the data we will use and various measurement problems. UNPAID FALLY EMBERS AS % OF LABORFORCE 15 1 * z w 13 0.~~~~~~~~~~~~~~~~~~~~~~~0 5t | | SectionIV we willdecomposethechangesin foreach decade between1940and 1980intocomponents self-employment withineconomicsectorsand attributable to changesin self-employment 978 This content downloaded from 186. By 1984thatratewas increasein therateof self-employment overa decade earlier. Employment and Earnings. self-employmentrates. (Source. .SELF-EMPLOYEDA OFADULTPPULATION 17 SELF-EMPLOYED.Journalof Sociology American UNITEDSTATES SELF-EMPLOYMENT RATES.S. . SEFEPOE f AS OF ADL LABOR FORC 1945 1950 1955 1960 1965 1970 1975 1980 1985 YEAR which a little involving relatively physical variety of new kindsof services.~~~~~~~~~~~~~~. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .97 on Mon..% \ _ _ _.. SectionIII willthenpresent a statistical analysisoftheannual time-series data forthe UnitedStatesin thepost-WorldWar II period. are growing?Or does it reflect withinoldersectorsof the economy? These are the questionswe will try to answer. requires is the task of SectionI below.) Department of (see fig. Beforewe can examinethisempiricalproblem. 1.the concept This ofself-employment a morerigorous theoretical elaboration.1).The central that therehas indeed been a objectiveof this sectionis to demonstrate reversalin the decline of the pettybourgeoisieand that this reversal ofcyclicalunemployment the cannotbe seen as simply a reflection during 1970sand 1980s.

production conproductsof labor are meant to be exchangedratherthan directly TABLE 2 THEORETICAL CRITERIA FORSELF-EMPLOYMENT Does Not WorkforIncome Worksforan Income Hires labor power ...... however. whichpresents a descriptive alternatives typolfrom otheremployment the self-employed ogyfordistinguishing categories. are displayedin table 2.. This willallow us to pinpoint exactly wherethecurrent expansionof self-employment is occurring..providea theoretical gory"self-employed. personis someone who earnsan incomeat leastin partthrough hisor herownlaborbut notby sellinghis or herlabor powerto an employer fora wage..88. A self-employed workone has to enterthelabor market...e. accountof the cateTable 2 does not.....-The cellsmarked"Entrepreneurial capitalists" and "Petty bourgeoisie" composethecategory " "Self-employed. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .6. second.... Rentiercapitalists Domesticworkers...... beingemployed by oneselfand is primarilycontrasted to two otherconditions: beingemployed by someone else (a wage earner)and earning an incomewithout at all beingemployed (i.. coupon-clipping (a These "rentier capitalist") receiving an incomestrictly from investments. a rentier of one sortor anotherwho receivesan incomewithout theintersection The category thusdescribes working).PettyBourgeoisie components due to changesin the distribution of the labor forceacross economic sectors.. I.literally. permanently disabled Unemployed Entrepreneurial capitalists Pettybourgeoisie Workers NOTE. in orderto whether pendson sellingone's capacityto workand. Neitherhiresnorsells labor power. The Conceptof Self-Employment Self-employment means.... In these a self-employed hire workers or terms..97 on Mon. "self-employment" one's incomedeof two dimensions of economicrelations: whether first." One analytically powerful way of accomplishing thisis through theMarxian contrast betweensimplecommodity productionand capitalistcommodity In commodity the production. welfareunderclass.. Sells labor power . 979 This content downloaded from 186..... personmay may employno one but would be distinguished rentier froma passive. THEORETICAL ISSUES IN THE STUDY OF SELF-EMPLOYMENT A.

ofcourse.6. bourgeoispole of such contradictory are descripsmall employers and the pure pettybourgeoisie typically. Actualsocieties. capitalist do notown commodity production.97 on Mon. distinct capitalists theyare distinctfromworkersin that theyown theirown means of production and do not sell theirlabor poweron thelabor market.)8 5 The concept ofsubsistence production is notrestricted to cases where theproducer directly consumes hisorherproduct butincludes caseswhere this product is consumed bytheproducer's family orcommunity without themediation ofan exchange relation. is thecase all direct forsubsistence production.we willuse theterm "pure The unmodified petty bourgeoisie. actual societiesshould be analyzedas specific combinations of modes of orderto work.whether capitalistor other. who consequently own and sell products of labor. coequalto capitalism orfeudalism in theMarxist typologyofmodes ofproduction. 2) has argued." expression willinclude smallemployers as well. as John Roemer (1982. 7 Indeed. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . In this context we areusing theterm simply todesignate a distinctive way of organizing the relations of production and are thusnot distinguishing ofproduction between "forms" and "modes" ofproduction. ated in two distinct forms of class relations. 980 This content downloaded from 186."thisimpliesthatcertainself-employed-small class.As Wolpe (1980).mustsell their power on the labor marketfor a wage to the ownersof the means of production.88.For the category"self-employemployers-comment. are thuslocated The directproducers in simplecommodity production in a distinctive "mode" of production that should not simplybe amalin simgamatedwithcapitalismas such. whenwe wishto refer to theself-employed whoemploy no wagelabor. ple commodity production are frequently called the "petty" as "little"capitalistssince theyproduce theyshould not be understood are of production. The tivelycombinedin a moregeneralpettybourgeoisclass location. the directproducers (theproletariat) labor themeansof production and thus.6Although thedirectproducers bourgeoisie. 11). many petty bourgeois mayeven be exploited by capitalists through unevenexchanges on themarket.7 Pure petty bourgeois underquite different relations from in thatthey do nothireand exploit wage laborers. (Since mostsmallemployers are indeed very small-in 1980 over 50% of all employers employed fewerthan five employees-Marxists generally assume that the petty locationsis dominant.are nevermade up ofpuremodesofproduc(1985.American Journal of Sociology sumedby theproducer and his or herprimary social group. bine characteristics of thepurepetty and thecapitalist bourgeoisie Such positions are an exampleofwhatWright (1978)called a "contradic" a locationthatis simultaneously situlocationwithin tory class relations.chap.and thus. 8 Throughout thisarticle.5 In simplecommodity production. and thusown producers of commodities own theirmeans of production the productsof theirlabor and sell them on the market. 6 It maybe objected thatsimplecommodity production shouldnotbe treated as a proper "mode"ofproduction. Wright and othershave argued.

capitalistcompetition selectsagainstsmaller unitsofproduction. the entrepreneurial capitalistclass. modity production is generally regardedby Marxistsas a formof precapitalistproduction.PettyBourgeoisie empirical category "self-employment" available from such as the surveys censusthuscombines thepurepetty conceptually distinct class locations: bourgeoisie.6. on-are therefore as categories generally seen as a kindof anachronism.overtime. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .g. whose long-term social existenceis continually eroded by the dynamic forces of capitalism. family farmers. pp.This in turn would reduce the proportion of small employers in the population. The HistoricalTrajectory of Self-Employment in MarxistTheory TraditionalMarxisttheory offers a specific accountof the history of the In historicalterms.Thus. artisans. 776-81).97 on Mon. as one of the forms of production thatexistedin in the feudal societyand that gained particularhistorical importance in simple transition feudalism rooted from to capitalism.theproportion ofthelaborforce thatworksin smallenterprises shoulddecline. Taken together. for example. Marx identified causal processes that two long-term shape the fateof both the pettybourgeoisie and small employers (e..small shopkeepers. and thus.Other timesthe destruction of precapitalistrelationsproceedsby a strictly economicerosionof theireconomic viability. thereis an inherent forthe tendency expansionof capitalismto destroyall precapitalist formsof economic relations. but there is also a tendencyfor capitalistunits of accumulation to becomelarger bothrelatively and absolutely. not onlydoes simplecommodity production dwindle. case. At timesthisdestruction takes a violentand politicalform. The second long-term causal processthat shapes the fateof self-emis the "concentration ployment and centralization of capital. First.feudalism). [1867] 1977.88. B. the resultis thatan ever broader rangeofeconomic activity is directly organized within capitalist relations. thesetwocausal processes led Marx and latertheorists to predict thatthe petty bourgeoisie (understood as smallemployers and the "pure" pettybourgeoisiecombined)would graduallywitheraway underthe dual pressure of the destruction of simplecommodity productionand theconcentration/centralization ofcapital. as when"bourgeois revolutions" abolishcertain kindsofprecapitalist propertyrelations(slavery. and small 981 This content downloaded from theturn ofthecentury theGermanSocial Democratic theorist Karl Kauttheinexorable skypredicted demiseofartisans. Because of increasing returns to scale. Social categories and so commodity production-peasants. and small employers.simplecomvarious sectionsof the self-employed. More characteristically occurs in the decline of simple In either commodity production." As the story goes.

it declineofthepetty bourgeoisie maysimply does suggest at a minimum thatthe classicalMarxistargument needsto 9 Other recentpredictionsof a continuingdecline in self-employment based on similar Marxist argumentsinclude Szymanski (1983) and Burris (1980). Second. then15% is olycapitalism shouldbe onlya fewpercent indeedhigh. 35]).Overall in the nine countries. 25). in the classicalMarxistarWhilewe thinkthereis considerable merit gument. . this has been one of the most robust ofMarx's predictions (at leastin theadvancedcapitalist countries. Belgium.thereare strongindications thatthe erosionof self-employment has at least temporarily stoppedin many advanced capitalistcountriesand.and Ireland-there was a fairly steadyincreasein the between the mid-1970sand self-employment rate outside agriculture the mid-1980s.p.9 Certainly on a broad historical scale. This is echoedin theworkofrecent Marxists suchas ErnestMandel. therehas been a steadylong-term in self-employment from around40% of thelabor force100 yearsago to 10%-15% of the labor forcetoday.pp.see Portesand Sassen-Koob[1987. First.Table 4 presents for theninecore annualdata on self-employment European countries. ofas much perhapswe shouldsee thepersistence as 15% of the labor forcein self-employment as evidencethatthe argumentwas deficient. there are two considerations thatsuggest thatitneedssignificant over modification.. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .who writesthat"the history of capital is the history of the destruction of the property of manyforthe benefit of an ever smallerminority" (Mandel 1972.American Journal of Sociology businesses:"The factorynow rules and the artisan'sdays are numbered. .giventhemassiveness ofcapitalist development the past 100 years. the UnitedKingdom. in theUnited decline States. thelast act of thetragedy" (Kautsky1902. and perhaps even more telling. rate the self-employment in was nearlystable duringthe same period.In four of these countries-Italy.France.97 on Mon. 193). perhaps. The complete disappearance [ouremphasis] ofthesmallbusiness sectoris . in the developing on the persistence of highself-employment world. has even been reversed. 21. 982 This content downloaded from 186. p. If thetacitprediction ofthetraditional is that theory in theera ofmultinational theexpectedlevel of self-employment mighthave expected(in lightof the theoretical claims of the classical Marxist argument)that the pettybourgeoisie should have virtually disappearedby now.Whileof coursethisarrest thehistorical be temporary. Instead of seeingthe drop from 40% to 10%-15% of thelabor force as unequivocalconfirmation of theclassicalargument. As table3 indicates. and Germany.6.

97 on Mon. Linder1983). 123-25). Historical studieshave demonstrated countercyclical increasesin self-employment and small businessstartsin the United States (Ray 1975. Huber 1982. self-employment willeventually givewayto centralized massproduction. Our examination in the United of self-employment Statesin the postwarperiodwill addressthreeof themdirectly. "Unemployment drives many intotheunderground [economy]" (1982.Whileunreported activities are by definition excluded from changes in self-employment drawnfrom official Portes statistics. 96.rather. Alderfer and Mitchell1950.88. the petty bourgeoisie.thisproducesshort-term countercyclical responsesof self-employment to unemployment.pp. officials haveexplicitly argued thatinformal "self-employment . smaller units aresimply more efficient.Mandel1972. 124).p.p. pp.cited in Pahl 1984. reduces theactual levelofunemployment" (Report oftheHouse ofLordsSelectCommittee on Unemployment 1982." theself-employed themselves generally do appearin official statistics becauseofregulatory enforcement ofbusiness licensing (1987. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . thepetty bourgeoisie may notbe an anachronism at all but.pp. and perhapseven expand. pp.p. . a dynamically important element ofcontemporary capitalism.10 C. see also Samuel 1975).1"We will 10SomeMarxist authors suggest thatMarx'sontogenetic account oftheprecapitalist factof its origins of petty commodity production does not rule out the structural continual reproduction.France(Steinmetz 1983.pp. and under certain circumstances evenexpansion. Much of thework on the "informal." or "underground. 195-96.Hagelstange 1986." economy arguessimilarly thatinformalself-employment is a responseto crisisand poverty (Portesand Sassen-Koob 1987.)andother branches. 46." from theTudor periodto the present (Pahl 1984. and England.. 197or arguethatin various 99).-One suggestion from historical literature is that-the growth ofself-employment is a micro-level responseby workers to economicduress.PettyBourgeoisie be supplemented by an accountof the mechanisms thatreproduce. 431-34. Self-employment as countercyclical response. 285).6. whereworkers used part-time self-employment as a "cushionagainstperiodicunemployment. Theseauthors focuson the"pioneer role"ofsmallfirms services (repair shops. In most Marxist approaches there is nonetheless an assumption that as sectors age. contrary to themorehistoricist Marxist treatments.suggest in selfexplanations fortheobserved reversal employment rates. Alternative Explanationsof the Stabilization and Rise in Self-Employment Varioustheories. etc.pp. In Britain. 42). and in the Sassen-Koob arguethatdespite failure fully to report earnings and casualhires "informal economy. 983 This content downloaded from 186. some of themcompatible withMarxism(ifnotwithits "classical"variant).As Huberwrites. 121). Thus. " The unifying dimension ofthe"informal" sector inthis literature is that itis centered on activities notreported to thestate. Mingione1983. within capitalism itself (Luxemburg 1951. 47.

0 .. 4) v 4 - Q n * * _l se * *f * * ~inC.N N~~~~~~~X r4 .6. . o .4 0 c o66 4 6 6 o6 0 z~~~~ n | 4- g? Sox . 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . o 1. . at- *-oom 4-a Ea0 12 4+ P H O S>. z. * c)i 0i Qa Q m -' C. e . . .t . .CN 00C4" rn **O O E-a E 4-4na * 0~~~~ 40 0 ::*--:*--.-:: 984 . .97 on Mon.* * * ** * e o * -) H o~~~~~~~~~~ C.88.o- c 6o 2u'6 O~ o %0 0 i'0 n C' n C') a'% a'% C' a' a' a% ON 00oo00000000 984 This content downloaded from 186. 00in .. .')Cse.

4-4 ce C6 4) 4. 00 r cn 4) bo 0 W Q W 'O 0 cn 4) : 41 .0 0 0 4) cn Ov 0 0 ov m O 44" \0 W 0 W 4) W.2 :a ". C4) O = t* cd .O 10 tn W 4) 4) 0>' 985 This content downloaded from 186.0 4. bo cn 4-4 4) > 4) 4) 0 4w-4 -2 cn 41 0 (n In 47) 5. J bo cn 4) bi) R ce 4.. 4) S 0 II. 0 : CZ s 4) . > A4 t tn a\ -4 U W 4-J 40.*J.4 O -Z Z 0 O 44 Z T. 4) 0 C. cn O W 0 4) u 4) 4) O 41 00 4) r . 40. -5 0 00 C7. 14-1. 0 V Z > f W M.11) I V I-.T. 4) O 4) 4--l 0 -0 4-i C: O 4) tn +j = 404 V r. e. bD = 4) i to IV 4-4 4-4) 4) "O 0.. R to oo O" W 0 C. W 0 u 0 00 0 0 0 1. O V 4) cn O > 0 = 4) Q r. u 0 'n w r. 4-1 1. W 41 4L 0 Z. a 4. E cn b.O 1. t. W Q 1. -. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .>' 0 V 4L bO cn 0 -4) cn Ei 4) cn 4) 0 0 45 0 IC (1) 0 4) u 4) C 4) 4L 0 cn W-4= " 0 v x 0 4) 1 -4 .. 4) t B .0 cn <ZN 0 W X Z Cy.97 on Mon. in 0 4) cr 4) u O 0 0 4) 4) 0 cn Z W w 41 4) 0 U cn .88. 4) -0 0 00 t4 CY% 0 4) W ': W 0 tn 4i 4) O &. lv . 0 cn r.0 4) 404 'cnj 0 = 4) 0 4) 4) W 0 0 O o 'n cn -t4 4) +j 2. :41 W 3 En O o +j 41 t . $. 0 ts W N O r. 1-4 Cw :t4 4) 0) Z re 1.J 0 5 0 00 ->-. - S-' 0 0 4-4 j 0 4) W V . 4-J -0 -0 4) 4.W tq u cu 0 cn W N 0 cn :3 tn W 0 cn 0 0 tn 'A cd g U-) 0. 4) 4) w ..00 00 ON 01% 01% 1-4 1-4 Z (Z $4 (n 42 4 :ad + 4-J " " 0 cd Z En 4) Q v'-. 4) 05.tko 4) 4) A cn . cn 4) 4. 0 >-. 0 tn 0 : W 4. g cn 9 4) &. W tn ON -4 4) bo 0 0 4) '4. O 4) 0 Z O "! 4) 4) 75 44 cd 0 04 + -O En b --W t 0 0 -cn C)" C) $.. - oooo 40 4) 4) 0. bo C) > 00 4) C) 4) > W W 4-' 4' 0 4) 00 0 W 4) 0 to 4) b'D (h g 4) 4-4 0 4) W cn W tt 0 &.4 cn 4) En S a C)W 4) 4-) En 1. ti &.-. 4) &.6. 4) 4) -4 cn b" 4) . 0 0 a vi Q En 4) .. 0 4) 4) 0 4-4 0 4) 4L N "* 4. &. 0 g -4 u V 4) . 0 W tn 4i 4. 0 40.4 W I-. 4) 4) I-. X4 2 4) t8 0 g 44 5 4) tn 0 cn 4) 4) 4) > 0 W = +3 4) 4) O 0 4) u C. tn m . 4) 0 -'n 4L CY. a cn 4) C. I 4) I. 4.) It 14) O tn v C. 401 C) 00 C. 0 4) cn 0 > 0 14 4) 4) 0 A 14) -tn0 - O 1.:8 E.8 Z toE $t 'm to v tn .0 C 1) 15 "O cn 00 d) ON -4 >.-' 0 W w 0 'vo 0 4. 1 4) in ON 'E $-. ow 0 u C).

00 V c '--v CC e e 6 _ _ _ 6 _ 6 _ 6 6 ve O.. _l _. C. _. . .. CN 0 o ini 1. __ . . ~~~~~~~~~~~~o6 __ . . . . . .. . ? ? 4) o6 o6 o6 r? ~ ~ O 0 o6o6r--6 - - - --- .. .. _. Ce Ce C1 - o N moo ci o C.... _ _ o oo 6 _ .6.. _..88. ? n z 0 X e .. C.. .. C.) o 4 6o6o6o6 -. . : N . . .r m 6m c?c- c. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . C. C. . C. .C...97 on Mon. . -. . . . .00 00 00~~~~t 00 00 0 0 O This content downloaded from 186. . .. N O O O O OOO O O _~~~~~~~~~0 _~~~~~~~~~~~~~~~~a 4Z r o Q _ ? 1^ t t t N O t. C. . . . o6 o6 o6 o6 o6 o6 o6XX cn~~~~~~l_ . _l C. ... ~~~~~~~~~~..i oi C. . ..

20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . 56-57). We will examinethe plausibility of thesekindsof expectations bylooking at thespecific economic sectors thathave contributed mostto the expansionof self-employment in recent years. Nora and Minc 1978). to contemporary macroeconomic theimportance of knowledge. Pioreand Sabel 1984.nonpostindustrial ofthe sectors in response economy.6. communications. persists becauseitcan better meet the component ofdemand fluctuating (Sabel 1982. pp. p.Michael Piore's model of "dual industrial structure" argues that smallerfirms. in the olderindustrial Decentralization sectors. and information. an increasein selfemployment can be expected. withits less specialized. Postindustrialism. withtheir moreflexible forms ofproduction.PettyBourgeoisie testfora countercyclical logicbyrelating ratesto unemself-employment ployment. Hirschhorn 1984.not because the forces driving centralizationand concentration have in generalceased to operate. Small firms have particular advantagesin adaptingto the challengeof "flexible specialization" (pp. Pioreand Sabel (1984)also see theadvantages ofsmaller firms inprovidingcertain services and specialized machinery formass-production firms.pp." or orbiting and the breakdownof vertical suppliers.One ofthehallmarks ofpostindusself-employment.88.butbecausethe emergent sectorsare more decentralized and heavilyweightedtoward at leastat theoutset. 34-37. and self-employment mayalso be raisedby theresponses ofolderfirms-federated enterprises with"solar firms. Sabel 1982. -Finally. 987 This content downloaded from 186. Touraine 1971. theirgeneral arguments about theeffect of new technologies suggest thata risein self-employment might be partof a qualitatively new phase of economic development (Bell 1973. 35). -While theorists who analyzecontemporary social trends withconceptsof the postindustrial or "information" society have not systematically addressedthe questionof self-employment. trialism. Within such an interpretation. 248-49).p. This view of technologically based dualism can accountforthe upsurgein self-employment as a responseto the challengesto business from increased international competition and less stabledemandsincethe early 1970s.26-28.97 on Mon. 12 Managers of mass-production firms orient their productive capacities to thestable component of demand. Huber 1982. severalapproaches predictthat small firms (and hence self-employment) should becomemoreprevalent even in theolder. 1980. 27). 12 Moderncraft is thusnotan atavismbut production a "necessarycomplement to mass production" (Piore and Sabel 1984. product-specific techniques. are better suitedthanmassproduction firms to markets characterized by fluctuating or low levelsof demand(Piore 1975.whichis demandat the bottom of the business cycle. it is often argued. One mighthypothesize that the expansionof various kinds of "high-tech" servicesopens up greaterpossibilities for self-employment sincein manyinstances theseservices requirerelatively littlephysicalcapital.The "secondary" sectorof the economy.

Department ofCommerce.p. 14 Manysmallbusinesses In suchcases it and farms are runas "family" enterprises. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . Data Used in the Annual Time-Series Analysisof Self-Employment forthe UnitedStates labor-force data forthe measures. especially intheBritish "middle mass. unlessexplicitly stated otherwise. 988 This content downloaded from 186.97 on Mon. consider members" but we "unpaid family partof "totalself-employed. Postindustrialism and decentralizationwill be assessedindirectly usinga shift-share analysis.In contrast to the postindustrial thisview arguesthat perspective. less centralized ownershipstructures may emergein all sectorsof the economy. and unpaid family workand the number of self-employed unemployed.6.-The time-series Self-employment analysisof self-employment are takenfrom the Current PopulationSurofLabor vey(CPS) statistics. Whenwe wishto refer to theself-employed. published by theU. including the older. Scherrer 1988. thiswillinclude unpaidfamily workers. DATA AND METHODS In therestofthispaperwe willattempt a preliminary empirical examinationof thesehypotheses.14 13 The CPS self-employment ratesare almostidentical to thoseyielded by another source.g. willuse theexpression "formal self-employment. often makes little sensetodescribe onemember ofthefamily (typically thehusband) as as "unpaid "self-employed" and the others(typically the wifeand adult children) and gender relafamily workers.." butnotas self-employment. II. see also Huber 1982."Thesenew forms ofhousehold work mayshowup inofficial statistics as "unpaid family workers." therefore. These changesare not seen as limited to emergent tors. 282-84.Whenwe refer to"self employed" or"petty bourgeoisie. S. ofunpaidfamily we exclusive workers. 168-69. we ers. 294). or servicesec1989). Pahl (1984)and Gershuny (1978)argue.we consider theessential class location of thesetwo categories to be identical (contra Cuneo 1984. The view ofself-employment as countercyclical responsewill be assessed using a time-series analysisof the effects of unemployment on self-employment. All statistics refer to civiliansaged 16 or over.e. A.morebasic industries. that self-provisioning is increasing. B). thework-age theannualaveragenumber population.pp.Journalof Sociology American integration (pp." We also analyze thetwocategories separately (seeApp. publishedmonthly bytheU. Department 13 The annual seriesconcern in Employment thesize ofthe and Earnings." Whilesuchlabelsmayreflect cultural conventions tions. theNationalIncomeand Product Accounts oftheUnited States. civilianlaborforce.S. Thisis becauseunpaidfamily workers mayrespond todifferentforces thanthepaid self-employed. For mostpurposes.In thissection we will first describethe data used in the time-series and shift-share analysesand will thendiscussbothtypesof methodology." as will presentthe data for the more formally definedself-employed well.88.

thatsomeunpaidfamily workers have beenconverted to paid employees ofan incorporated business as well.9%. 1978. we wereable to obtain estimates of the proportion of all self-employed who were incorporated for four years:1967.and 1982. notthe"unpaid family workers.88.PettyBourgeoisie Estimating thenumber ofself-employed is morecomplicated after 1967 thanforthe earlierperiodbecause of changesin censusand CPS procedures.we wereable to estimate theintermediate figures incorporate their businesses. we facedthetaskofcorrecting fortheseunderestimates. thenit would not be a particularly difficult task to adjust the annual estimates.97 on Mon.5% ofthe"true" selfemployedwere incorporated (and thus misclassified as wage earnersin the CPS). changesin the nominalself-employment rate mightsimplyreflect changesin the proportion of self-employed who chose. and. critical questionnaire itemthatis used to producethisclassification does notappear on thepublic-release CPS data tapes. are basedon a corrected figure for formal self-employed plusan unadjusted figure forunpaid family workers (thusunderestimating the totalselfemployed).it is by underestimating ratherthan overestimating the increasein self-employ18 mentrates. the CPS and thecensusbeganclassifying suchpersons 15 The as wage earners. therefore.6.17 On thebasis ofdata for these years. On thebasis ofdata other thantheCPS. This inflation factor was appliedonlyto theformal "self" It mayalso be thecase. 18 Our correction factor is conservative forthefollowing reason.ofcourse. it appearsthatin 1967about 10. thisis notthecase. This resultsin a seriousunderestimation of the numberof people who. Since the rateof incorporation has increased in thisperiod. employed" figures. BureauofLabor Statistics (Fain 1980. Our estimates oftotalselfemployed. otherwise.we had no wayofestimatingtheproper inflation factor forunpaidfamily workers.Sincetax laws made itprofitable formanybusinessmen to incorporate and technically become employeesof theirown corporations. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . Unfortunately. thismeans 989 This content downloaded from 186. in anycase. If the proportion of theself-employed who incorporated were constant.forlegalistic seemsunlikely thatthisis as common as for peoplewhowereformally self-employed. 17 Thesedata are from articles in theMonthly LaborReview.and thusitis impossible to reclassify the"incorporated self-employed" from thewage-earner to the self-employed category.Becker1984). The method used to correct these figures guaranteesthat if we have erred. therefore. whileby 1982 thissharehad risento 23.16 In orderto have a consistent annual timeseriesof self-employment. accordingto the sociologicaldefinition.and thefigures after1982 by linearextrapolation.1975.We usedinterpolations and extrapolations tocalculate an "inflation factor" bywhich tomultiply theCPS self-employment figures.Ray 1975. However. 16 These estimates comefrom Fain (1980)and Becker(1984).published by theU.S. are selfemployed. 15 Some of the advantages of incorporation by the self-employed are discussed in Alston (1978).

thetime-series self-employment analysesusinguncorrected it did not while this affectedthe magnitudesof certain coefficients. in own business. we wantedto treat thetotalcategory as well." whilethe comparable CPS estimate is 11. Whilewe knowof no research that has carefully investigated thereasons thechronically for lower estimates ofself-employed in thecensus.5%.Fortunately. 21 One final theincorporation factors for theannual aroseinconstructing complication 990 This content downloaded from 186." We suspectthatmanyself-employed peoplewho sell their services toindividuals and arepaidon an hourly basisincorrectly check the"employee ofprivate for wages"category..20 analysismightsignificantly estimates First. B). ratesas self-employment or extrapolating are not actuallyinterpolating to the annual CPS data neededto correct such but onlythe adjustments all we estimated forincorporation.85% ofthelaborforce poratedself-employed" and "unpaidfamily members.. Second. becausewe havesomewhat lessconfidence figures. we have underestimated thetrueexpansion ofself-employment in thepost-1967 period.30%. Even if we disregard the problem incorporation.47%.g.ifanything.salaryor commission" comesbefore "self-employed professionalpractice or farm. Wright's (1986)survey in oftotalself-employment and unpaidfamily workers States. This largea discrepancy is notunusualbetween surveys and censusdata.70%. . the 1970census werenotbrokendown by industrial by sector.We therefore data do permita breakdownof incorporation from the 1970 census-96% of the incorporated applied the proportions 4% in agriculture-toour interpolated self-employed in nonagriculture. we chosenotto use them as thegeneral basisforcorrecting theannualCPS time series.. the response for category "Employee of privatecompany.American Journal of Sociology is thatone would expectthe rateof One problemwiththisprocedure sectorthan in the incorporation to be much lower in the agricultural however. in which on thechecklist ofemployment statuses. thecensushas consistently lowernumbers of self-employed thanthe in thecategories CPS: in 1970. e. businessor individual. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . is an intervieweradministered In any questionnaire and therefore less subjectto thisresponse error. nonagricultural sector.6. in thecensus case. and extrapolated It might be objectedthattheuse ofsuch interpolated in a time-series bias the results. of the analysis.whiletheCPS's is 11.21 conclusions changeany of the substantive that. The CPS. 20 Analternative strategy for correcting theCPS annualfigures wouldhavebeentouse the1970and 1980censusdata on thenumber of"incorporated self-employed" as the basisformaking theinterpolations. we suspect thatit has todo withtheself-administered nature ofthecensusquestionnaire. 19 estimates forthe annual timeseries.thecensusreports "unincor9. incontrast.The fourdata pointson incorporation. The censusestimates are also nearly alwaysseveralpercentage points lowerthanin in theUnited mostquestionnaire of class structure surveys. compared withthe censusestimate of 9. individual. We decidedagainst usingthedecennial censuses forthispurposebecause of the large discrepancies between the censusand other in the estimates of surveys of self-employment.we Thereare tworeasonswhywe feelthisis nota seriousproblem.88. 19Although agricultural and nonagricultural self-employment are also analyzed separately (in App.and in 1980thecensus result is 9.97 on Mon. wages. figures. sector. yields an estimate 1980 of just over 14%. and. and of utmostimportance.

uponwhich the 1975 and 1978estimates ofincorporated self-employed werebased. Unemployment -One of the main purposesof the time-series in SectionIII is to estimate analysis ofand historical theexistence changes in the size of effects of unemployment rates on self-employment rates. We have used thelatestand bestestimates but stopped at 1984rather thanuse the 1985figures. Bureau of the Census 1983a.was reestimated by theCPS following the1980census. whichwerereestimated after each census forthepreceding decade.000 for1978.22 B. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .6.and. This raises the issue of what is the appropriate denominator forthese "rates"-the totallabor forceor the totalpopulation.The problem with using the labor forceas a denominator in eitherset of rates is that as unemployment increases.The totallabor-force size forthe1970s. 991 This content downloaded from 186. The original figures on incorporated self-employed were1. 1983b).135. ratherthan labor-force size.We therefore use totalU.97 on Mon.88. giventherather significant change in labor-force estimation procedures in January beginning 1985(see Fenstermaker 1985). We also performed the regressions using labor-force afratios.517.500.832. and none of the conclusionswas substantively fected. With theuse oftheexpanded laborforce these wereincreased to 1.S. thus. we are forcedto use these data forthis analysis. thelabor force itself tendsto declinebecauseof the increasein "discouraged workers.S. censuses. unemployment relationship intothevariables. Census Public Use MicrodataSamples(1% files)(U.573 estimates. and 2. analysisuses the"class-of-worker" itemfromthe 1940-80 decennialU.S.000 for1975and 2. we have also adjusted the1975and 1978incorporated self-employed estimates upward according to thesame factor by whichthetotallaborforce was reestimated. The "class of worker" self-employment timeseries. Data Used in the Shift-Share Analysis:Decennial Censuses and Self-Employment Data In SectionIV below we will conducta shift-share analysisofthechanges in self-employment by economicsectorand by decade between1940 and 1980. despite our qualms about the accuracyof census measuresof self-employment."This impliesthattherewill be a tendency forself-employment as a proportion of the labor forceto increase undertheseconditions declines.100.PettyBourgeoisie rates.S. 22 A final problem withtheCPS data involves changing estimates of thesize of the totallaborforce. respectively.including the recently released1940 and 1950 U. The only data available forthese fourdecades are the national censuses. simplybecause the denominator in thispaper concerns Since one of the centralhypotheses the effects of it is important not to build such a on self-employment.Becausewe areusing therevised figures. -The shift-share Self-employment. adultpopulationas a denominator fortheunemployment and self-employment rates.

69).American Journal of Sociology variableincludesemployment categories thatcan be collapsedtoyieldthe total numberof self-employed and wage earners.ofcourse. 23 One could. 23 The self-employment ratesused in theshift-share analysis.25 Unpaid family workersare includedalong withthe traditionally definedself-employed in the shift-share analyses."was thus roughly equivalentto thecurrent notion of"self-employment.97 on Mon. The analysisofthe 1940-80 data excludesthecurrently and unemployed all personsunder 16 yearsof age. 24 The 1910 censuswas thefirst to differentiate amongoccupations on thebasis of socialclass (Conk 1979. Sincethisis nota realistic assumption.the self-employed were distributed betweenthe categories "own account" workerand "employer." with its connotationsof "workingfor oneself. The category "own account.sugin a personal gested communication thatthesekindsofclassifications werelikely to have occurred. as in thegeneral time-series analyses)becausewe are interested in thesectoral distribution ofself-employment. 63). Thismakessense. The 1940data are unweighted becauseonlypersons from theself-weighting samplewereselected. Department of Commerce1940. The difficulty in theannualCPS data withestimating we encountered the incorporated self-employed does notarisewiththe 1970 and 1980 census data because thesecases are identified in thePublic as a separatecategory Use Samplesand can thusbe merged withunincorporated self-employed. 25 withthe timeseries.24 In the 1940 census. all use employed adults in sectorsas the denominator. onlyifone is willing to assumethatlabormarkets are so stratified thatan unemployed person is queued up forfuture jobs onlyin thesector of last employment.p. some wage workerswithoutsteadyemployment-for example. 25). p. define theunemployment ratewithin a sector bythesectoral location ofan unemployed person's latest job.6.-For theeconomic sector we reliedon classification.We generated tables of industrialsector by self-employed/wage earner using the "class of worker" and industry variables. 26 The 1950data are weighted according to theweight plO-13-BRWT. The class-of-worker variableused bythecensusbureauappearedin its current formonly afterthe 1940 census (Jenkins1985. p."Census enumerators were instructed to excludepersonsworking forwages from the "own account" status(U. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .S. it is difficult to define the totallabor forceof a sectorin a meaningful way.26 Economicsector." However.a historian who has written extensively on laborers-may have been entered in thiscategory. 992 This content downloaded from 186.therefore. however.We restrict theanalysesin thispartof the articleto employed adults (ratherthan the adult labor forceor the entire adultpopulation. unemployment is notgenerally assignable to thelaborforce of givensectors oftheeconomy. Sinceunemployment has at best an ambiguousstatuswithineconomicsectors.88.These data are forall employed adultsin thelabor force16 yearsand older.

25(Johnston 1984.28 The "shift-share" analysis. 556).-Shift-shareanalysiswill be used to explorethepatterns of changing self-employment acrossand within industriesfrom1940 to 1980. high R2stendto pushtheD-W statistic toward zero(Pindyck and Rubinfeld 1981. thisprocedure breaksdown the overalldecennialshifts in the divisionof the labor forcebetweenself-employed and wage earners intothree components: one called the"sector shift effect." whichis due to a secondcomponent changesin thesectoralcomposition of theeconomy. self-employment after1948 and forcounterAll the time-series cyclicalresponsesto unemployment. one assumes thatthe self-employed/wage-earner distribution withinsectors remained the same betweenthe two timepointsbut thatthe divisionof the work 27 The method usedtoestimate p is that developed byBeachandMcKinnon (1978)and is availablein theprogram TSP (Time SeriesProcessor). to calculatethe sectorshift forthe decade 1940-50. Methods The time-series analysis. Valuesbelowthese limits lead us toreject thenullhypothesis ofno serial correlation. The basis of the technique involves the comparisonsof the selfdistributions employed/wage-earner impliedby counterfactual class-bysectortables that we construct with actual class distributions. 993 This content downloaded from 186. is denotedthe"class shift effect.butwe wereforced the categoriesbecause the industry codes used in the 1940 and 1950 censuseswere not as detailedas in latercensuses.88.05). In the present case.6. and forfour variables dl is 1. forthreeindependent variablesdl is 1. 161).97 on Mon. the uppervalues forthe D-W testprovidelimits beyond whichit is possible to retain thenullhypothesis ofno autocorrelation. C. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .p.The relationship betweenour 31-industry classification schemeand thatused by Singelmann is givenin table 5.and a thirdis the "interaction wage-earner shift effect" traceableto combinedchangesin the relativesize of sectors and in the self-employed/wage-earner balances withinsectors." reflecting changesin theself-employed/ balance withineach sector. It should be noted that becauseourR2sare generally closetoone.36 (P = . For example.dl is a better test ofautocorrelation thantheupper limit du.PettyBourgeoisie the37-sector industry schemedevelopedby Singelmann (1978) and used to collapsesomeof byWright and Singelmann (1982).31. The shift-share analysisis the same used by and Tienda (1985) and Wright and Singelmann Singelmann (1982). -Time-series analysisis used to testforthe presenceof trendsin U.S. the appropriate lower boundoftheD-W test (dl)belowwhich we still mayhaveautocorrelationis 1. Nonetheless. 28 For equations withtwo independent variables (excluding theconstant term).p. modelsinvolve generalizedleast-squaresregression using a maximum-likelihood estimatorofp as a correction The Durbin-Watson forautocorrelated errors.27 testforserialcorrelation is presented in each table.

..... 23 24 25.. Machinery Chemical . Extractive: .......... miscellaneous) ..................... Laundry.. 26...... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Singelmann's Categories* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18................ ........ Repair (auto... ................ Social and politicalservices: Medical and healthservices ..................................... engineering......... .... This content downloaded from 186........... Agriculture. Government . .. 5..... Textiles ....... Retail.............. ...... . Personalservices: Domesticservices ... Miscellaneouspersonalservices......TABLE 5 INDUSTRY CLASSIFICATION CATEGORIES FOR SHIFT-SHARE ANALYSIS Our Categories 1............................. Transformative: Construction ....88.... Banking Insurance.......... and other professional services...... 20 22........... Wholesale ................ Businessservices: ........ 37 * Thesenumbers to theindustrial refer classification system developed by andusedin Wright andSingelmann Joachim Singelmann (1982).......... ........... 4................. Eating and drinking ... fishing ......... ..6.... Entertainment ...... forestry.............. Mining 2.......... Law.. Education... Metal..... Real estate ........ Postal services.............. Utilities ............. ....... 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions ....................... Hotels and lodging................ Businessservices.......... ............. 6........ Distributive: Transportation ....... Communication ...... 3.. Welfareand nonprofit ................. 21 19..... 29 27 28 30 31 32 33 34 36 35..... Food ... Miscellaneousmanufacturing ..97 on Mon....

thatit is a directresponse to cyclicalpatterns ment. we will examineone important possibleexplanation of unemploysal. net of the a percentage of the adult population. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . Basic Time-Series Results The annual time-series ratesfortheUnited estimates of self-employment 1 and AppendixA. Given the relativeeconomicstagnation in the Americaneconomy since theearly1970s.A certain be a response to a lack amountofself-employment might inof good wage-laboremployment opportunities. Whileunemployment suranceand welfareprograms forthe unemmay reducethe incentives ployedto seek self-employment. Secspecifications of the self-employment forthisreverond. First. one would nevertheless expectincreases in the unemployment rate to generateincreases in self-employment. A. theclass shift effect is obtainedby allowing the class distribution to change as it actuallydid betweenthe two censuses while assumingthat the intersectoral distribution remainedthe same.6.PettyBourgeoisie forceacross sectorschangedas it actuallydid. The resultsin table 6 995 This content downloaded from 186. III. The results fora rangeofother forms oftheself-employment rate variableare givenin AppendixA. A visual inspection in self-employof figure1 shows the turnaround ment rates in the middle 1970s.88. Similarly.itmight ofthelongreversal be thecase thattheapparent term in self-employment in unemployment trend increases simply reflects in the period. regardlessof whetherunpaid family is workers are includedor whether thelaborforce or theadultpopulation in calculating used as the denominator the rates. A class-by-sector table is thengenerated usingtheseassumptions and the actual size of the labor forcein 1950.we will show thatfortheUnitedStatesthedeclinein self-employis mentrateshas indeedbeen reversed in recent yearsand thatthisresult robustacross alternative rate. ColStatesfrom1947 through 1985 appear in figure umn 1 in table 6 presents thebasic time-series modelsbothfortotalselfand and for the employed (formally self-employed unpaidfamily workers) formal"self-employed" taken separately. namely. The interaction shift effect is the remaining changein the size of each class. and the difference betweenthe two figures is the sectorshift effect. TIME-SERIES ANALYSIS OF SELF-EMPLOYMENT IN THE UNITED STATES In thissection ofthearticle twoprincipal we willtry to accomplish tasks. The resultant counterfactual estimateof the sizes of the self-employed and wage-earner "classes"is thencompared withtheactual sizes of thoseclasses.97 on Mon.

.: 0 ? j0b cd IotIw o r. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . * * e C: ? a~~~~~~~~~~~~~~~~~~~~~~~~ 0Wt ..88. 0 . 3 .t X~ ~~~~OC qo IC i..6..97 on Mon. . lao C) C) I C) 0 8 |= =3 I cd ? a | D .cO> 000o ] - r. . q~~~~~~~~C qd - yt q-qqtZ c Osa.NI" This content downloaded from 186..o NO 00 C oo o % oo oo O t t m O O O O ? 00 e o) o) ~~~~~~~~~~~~Cd t~~~~11 OOt Oo N O ? O 00 Q L a..

therefore.self-employment rises-this effect is declining over time. of course. while t goes from0 to 36. This basic declining quadratic relationalso holds if we examine agricultural and nonagriculturalself-employment or if we calculateself-employment separately.there is a significant positivecoefficient forunemployment ratesand a significant negativecoefficient forthetime x unemployment interaction term. analysis. does notaffect thecoefficient fortimein model1. The Effects of Unemployment Columns3 and 4 in table 6 present therelationship betweentheratesof unemployment and self-employment. onlythe simpletrend variable.88.29In table 6. In column3. a quadraticterm(time2) is added.. theinterpolation procedure couldconceivably affect theresults.1 reachesits lowestvalue in theearly1970s. includingunpaid familyworkers) and forformal self-employment.t .first and thenincreasing.Two basic results are particularly in these important models. The significant.e.In column2.PettyBourgeoisie confirm thatthisrisein self-employment sincethemiddle1970sis statisticallysignificant. the annual average unemployment rate appears as an additiveterm. This suggeststhat while there is a countercyclical characterto selfemployment-asunemployment rises. This trendvariable is significant and positive both fortotal self-employment (i. First. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . Second. Since we are concerned to document thedecline of thecountercyclical effect ofunemployment on self-employment. ratesusingthelaborforce as thedenomrather thantheadultpopulation inator(see App. B. we ran the regression forthe years 1967-84only on theuncorrected figures. Its significance confirms of theexistence a long-term processof proletarianization. Time squared in thesemodelsis measuredas (t .This suggests thatit is unlikely thatthe reversalin the declineof self-employment in the early 1970sis simply a direct effect ofincreasing unemployment. B).6. time. Hereagainthere was a nonsignificant unemployment effect. Thisreflects thefactthat thecurve in fig.20 rather than t is used because subtracting this constant in model2 yielded thehighest t-value. appears.Subtracting a constant from t. To ensure that thedecline intheunemployment effect was notan artifact oftheestimation procedure forthe incorporated self-employed. The visual appearanceof a reversalin self-employmentpatterns in figure in theformal is confirmed statistical 1. 997 This content downloaded from 186. of self-employor destruction ment. column4.97 on Mon. it is interacted withtime.when the unemployment rate and the unemployment interaction withtimeare includedin the equations. positivecoefficient forthis termindicatesthatthe timetrendfollowsa basicallyparaboliccurve. 30 As discussed in SectionIHAabove.the magnitude of the quadratictimetermis notreducedin themodels. theseself-employment ratescontain an interpolatedadjustment factor forincorporated self-employed after1967.30 29 For the quadratic term.20)2.

We will explorein a preliminary betweenchangesin the sectoral the relationship pothesesby examining usingthe of the employed labor forceand self-employment composition decomposition proceduredescribedin Section IIC sectoralshift-share for the Table 7 presentsthe decennial changes in self-employment labor forceand forthe six employed period 1940-80. on self-employment.6. nonagricultural of thelabor rate is measuredas a proportion when the self-employment herethe interacforcerather than the entireadult population(although seems to have a However.31 analyseswe can draw two basic conclusions: From these time-series in thedecline and sustained reversal first. thecountercyclical above. bothforthe entire decombroad sectorsof the economy. moredifficult is considerably 32 As noted of willbe doneon distributions analysis IIB all theshift-share in Section todefine as itis problematic laborforce. muchsmallereffect thanforthe nonagself-employment on agricultural ricultural sector. thantheentire rather laborforce theemployed ofthelaborforce. self-employed.97 on Mon. might Whilegeneraleconomicstagnation linkage other thanthedirect mechanisms it would have to workthrough next will The section ratesand self-employment.Beforewe analyzethe shift-share Table 7 of theseresults. becoming wageearners' volveslaid-off in farming thanin retail or services. unemployment stillbe partoftheexplanation.32 This content downloaded from 186. of the pettybourgeoisie of increasing countercyclical effect Second. segment oftheunemployed distribution thesectoral 998 31 This makessensewithin inwhosemicrofoundation argument. a comment about thedata is necessary. workers are includedin theself-employment or notunpaidfamily are the same for Furthermore. SECTORAL DECOMPOSITION OF CHANGES IN SELF-EMPLOYMENT ofthe forthereversal ofthehistorical trajectory One possibleexplanation are forself-employment is thatexpanding opportunities petty bourgeoisie to a postindustrial in one way or anotherbound up withthe transition are explanationis that markettransformations society.88. IV.thesebasic results As in the simpletime-series figures. between unemployment in the of some of these mechanisms provide a basis for consideration conclusion.even the older leading to decentralization of both hyway the plausibility ones.American Journal of Sociology hold whether analyses. the patterns and theyare the same self-employed taken separately. there appearsto be a significant in the past decade or so in the United States. position up shop" "setting Presumably. while thereis a significant this effecthas been decreasing.An alternative of ownershipin all sectors. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . unemployment tion termis nonsignificant). as indicatedin AppendixB.

We believethatthismainly reflects the fact that the low point of the self-employment occurred trajectory around 1976 (see fig.3 48. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .there nearly a 3% annual rateofdeclinein theproportion oftheemployed labor force In the 1940sthisfigure thatwas self-employed.....03 17...... forexample.. in detail trajectory We will examinethesevariations shortly.......7 13.. Percentage self-employed by sector:t Extractive.9 -3..5% of the em999 This content downloaded from 186.....we will be decomposing a verysmall decline...59 17..38 13..This meansthat. Two thingsare important to note in the overall patterns First.. previousdecade 3.42 13...68 21....... 2.25 14...25 19......... ..1 -4.91 1940 23...46 3.9% oftheemployed to 9.... .....01 5.. Distributive ....23 15.75 20. 1950 1960 LABOR FORCE 1940 1940-80 1970 1980 1...under1%...90 12.. Businessservices .97 on Mon... . 1) and thatthe 1970 figure was not definitely surpassed untillaterin the 1980s.43 66.......07 7. 23....... These are all decompositions of thedecennialrateof changein the proportion self-employed... economy: 1940sand the 1970sthere in the was considerable variation acrosssectors of self-employment..In contrast. t See table 5 above fordefinitions of theseaggregated sectors..04 9.47 20.PettyBourgeoisie TABLE PROPORTION OF THE EMPLOYED 7 SELF-EMPLOYED...5 19..... was just under2%...74 6..24 66...81 5. Change from ... in table 7.3%)....3 -..thedeclinein self-employment in the 1950s and 1960s was fairly proportions generalacross the entire in boththe it occurred withineverybroad sector.. Self-employed as a percentage of total employed labor force...76 17.25 9. and during the 1970s....theyindicatethat the period 1950-70 was the periodof the most intense was declinein self-employment......6 -6......14 20..74 4.88..1 39... Proportionate changefrom previous decade* .as in labor force theCPS data analyzedin SectionIII. Transformative ...3 -27...19 5.. Table 8 presentsthe basic sectoralshift-share of the decomposition changesin the proportion of self-employment by decade from1940 to 1980. ....7 58.02 5.... showsa smalldeclinein theself-employment ratebetween1970and 1980 (from 9.rather thandecomposing an actual rise in the rate of self-employment forthe finaldecade in this analysis....4 18..52 3.8 -5..24 15... Second.6.. Social-political services. Duringthosetwo decades.69 * These figures are calculatedbydividing theentry from row2 bythepercentage self-employed in row 1 forthe previouscolumn....9 -28. rather thana rise. Thus.. Personalservices .03 10.

2 -....28..American Journalof Sociology TABLE 8 DECOMPOSITION OF RATES OF CHANGE OF SELF-EMPLOYMENT 1940-50 1950-60 1960-70 1970-80 1..3 4. 1).2 75..1 * These figures thechangein therateofself-employment comefrom row 3 oftable 7. col..1 -11. 7.8 to changesin distributions employment across sectors.88.7% declinein theproportion self-employed..3 -16. able to changesin the employedlabor-force distributions across sectors (thesectorshift effect).... The taskoftheshift-share analysisis to allocatethenetdeclineintothree components-oneindicatingthedeclineattributable to changesin theproportions ofself-employed withinsectors(the class shift one indicating the declineattributeffect).2 -20..... Class shift .. ..6 33. and one indicating theinteraction betweenthese two changes(the"residualshift")..the contribution of changes in the self-employment distributions 1000 This content downloaded from 186..6 6. ployedlaborforce was self-employed..3 . in row2 + row3 and row 1..3.. Correspondingly.. . In thefirst decade of theperiod(see row 6 in table 8)..8 -.5 -1. Percentage of rate of changein self-employment attributable to each component:11 . i..4 percentage pointdeclinerepresents an 18.6 74....9 39.... thepartofthetotal is thedifference between theentries ? This figure in row 1 thatis notuniquelyattributable either to changesin thedistribution changein self-employment of self-employment withinsectors.2 56.... 5.7%.27.. Residual? . nearly80% ofthe decline in self-employment was attributable to changes in the sectoral of the employedlabor force..8 +2..7 ....0 -14.... of thelabor forceacross sectorsor to changesin the distribution IIThese entries in are calculatedby dividing in rows2... to a changein the distribution of self-employment in row is thecounterfactual estimate ofhow muchofthetotalchangein self-employment t This figure 1 is attributable to a changein the distribution of thelabor forceacrosssectors.. .. whilein 1950only19.0 were due to changes in selfwithinsectorsand 14.9 .. 6.2 -1. 3.and only20% in the 1970s. Sectorshift effect.5 3.. This 4....2 19. 3.. Rate of changeof proportion of self-employed* .. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions ... and 4 bythecorresponding thefigures figure row 1.. ..... Residual ..6... over the decade divided by the rateof self-employment at the beginning in row is thecounterfactual estimate ofhow muchofthetotalchangein self-employment t This figure within 1 is attributable sectors. -18.e.... The most striking featureof the resultsin table 8 is the monotonic declinein theimportance ofthesectoralshifts relative to theclass shifts....7 -9.....0 -6. of the total decline of 18... 3.1% was selfemployed (table 7...1 -4. 2. Sectorshiftt .This declinedto 75% in the distribution 1950s.. 4.97 on Mon. They constitute of the decade. Class shiftt.1 79..4 16......0 -8. In thecase ofthe 1940-50 decomposition......about 40% in the 1960s.

..1 -..............52 11. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions ....3%.....2. .68 -22.12 -5....5...PettyBourgeoisie TABLE DECOMPOSITION OF SECTORAL 9 ON SELF-EMPLOYMENT 1950-60 1960-70 1970-80 EFFECTS 1940-50 Contribution of changesin distribution of employment to specific sectorsto the overallsectoralshift effect on self-employment: Total sectorshift* .....02 * The figures in thisrow are the same as row 3 in table 8. .0 Distributive ........ services ... Agriculture is the sectorof the economywiththe highest levels of self-employment. Distributive ..8% in the 1960sand 5.. -14.......... the decline in the extractive sectorreduced selfemployment by 21.8 -21..9 2..3 .30 -14... Business..8 -17.. notthesebroader 6-sector categories. Extractive .... contribute heavilyto the sectoraleffects on the declinein self-employment......... services .... In the 1950s...2 -5...... This droppedto 15..... 2... Declines in the agricultural sector.8 .....9 -... Let us examinethisdeclinein thesector shift effect moreclosely...1 ....07 -16..10.97 on Mon..83 -376..4 4......93 -7.. Percentage of totalsectorshift attributable to employment shifts in each sector:t Extractive .. Social-political Personalservices ..5 1. First.1.88..77 9... ..22 444..26 -152...58 .....4 1..1.17 102..2 -11. 1001 This content downloaded from 186......5 1....3% in 3 It should be notedthatthesector shifts in table9 are calculated on thebasisofthe 31-sector typology. withinsectors(the class shifteffect) increasedfrom16% of the total changein self-employment in the 1940s to nearly75% in the 1970s.....6 -1...5 -20..therefore.. Transformative ..... .93 1........2 -.2 -15.0 -1...thereis the steadyreduction in the effect of declinesin the extractive sector(primarily agriculture) on selfemployment....13 .. Transformative ....45 .22 113..92 1..28 -4. Social-political Personalservices .6 ........ in thispart of the table represent of each sectorto the the proportionate contribution t The figures overalleffects ofsectoraldistributional changesin row 3 of table 8....5 ....68 3.......33 Two patternsare particularly important forunderstanding theoveralldeclinein thesectorshift effects fromthe 1950s to the 1970s.1 115.32 140...... .....5 . Business... They are calculatedby dividing the contribution of each sectorto the totalsectoraleffect by the totalsectoraleffect.38 81.....57 -7...3 -.61 ....Table 9 breaksdown thetotalsectorshift foreach decade intothecontribution of each broad sectorof the economy.6 1.0 ..... .8 .6...

6. it is 3.self-employment declinedin virtually all in personal sectors oftheeconomy was a slight (theonlyexception growth services the 1950s). effect and the sectoralcontributions to this declinewere fairly evenlydistriba sharp uted across the economy. The secondresultin table 9 is the steadily increasing importance over four decades of sectorswhose expansion has a positive effect on the proportion of people self-employed.15% in the 1950s to about -50% in the 1960s to over -500% in the 1970s. 1002 This content downloaded from 186.88.suggesting 34 These percentages are negative becausetheycounteract a negative sectoral shift effect. class shift and in table 10 there self-employment. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . muchhigher thanin anyotherdecade.5. transformative.1. the sum of thesepositive effects is 3. it has less effect on changesin the overallclass structure. In the 1950sand 1960s.7 and a positiveeffect from businessservices.a negativeeffect extractive. 5. the negative effects are always smallerthan in the 1960s. in the 1970sthe verysmall overallsectoral shift effect on of . Even moretelling.4.The 1960sin particular were self-employment during thehighpointofan intensive within-sector proletarianization process:the totalclass shift was 16.2.2 is the resultof two counteracting self-employment sectoraleffrom fects. In thosesectors thatstill oftheprevious contributed a negativeclass shifteffect duringthe 1970s. and in the 1970s(col. in the 1960s (col.The decade of the 1970s represents breakin thepattern twodecades. in theeconand personalservicesof + 6.34 Thus. thesecounteracting effects increased from about . in table 10 thereis a much largerpositiveclass effect withinthe transformative sector.In the 1940s (table 9.97 on Mon. 3). Can theresults fortheview that oftables9 and 10 be takenas support theexpansion is largely a postindustrial ofself-employment phenomenon? are consistent withthisview: in table 9. 1). 2). Such positivesectoreffects act to counteract at least partially the negativesectoralshift effects of the decliningsectors.1%.4. The importance withabove-averageproportions of self-employomyof industrial sectors menthas been increasing over time.but positive. col. thegrowth of Some oftheresults businessservicesgeneratesa relatively on large positivesectoraleffect is a small. in the 1950s (col.0. 4). and distributive sectors of . As the agricultural sectorbecomessmallerand smaller. social-political services. And in two sectors-the is transformative effect sectorand businessservices-the negativeshift ofthelabor increasedas a proportion actuallyreversed: self-employment forcein thesesectorsover the decade. 6. effect withinbusiness services. whenexpressed as a proportion ofthetotalsectoral shift.7.American Journalof Sociology the 1970s. Table 10 breaks down the contributions of different sectorsin each in a mannerparallelto the sectorshifts in decade to thetotalclass shifts table 9.However.

..0 .98 1..8% (table 11...26 25.9 . ... services ... 48.2 2...45 -5.45 -11.2... 1 -2........3 -4. The two sectorsthat make the biggestpositivecontributions to the change in self-employment in the 1970s are businessservicesand construction: the former added + 2.52 * The figures in thisrow are the same as row 2 of table 8..34 25.4 Personalservices......1 -.....1..6. For a morenuancedpicture of the changesin the 1970s..43 29.35 13...8 10...1 ..5 ...... col......7 .7 .....68 6. 4)..... Business -. Transformative -55...97 on Mon..2 .... 1 .PettyBourgeoisie TABLE DECOMPOSITION OF TOTAL CLASS 10 SHIFT BY INDIVIDUAL SECTORS 1970-80 1940-50 1950-60 1960-70 Contribution of changesin distributionof self-employment withinspecific sectorsto the overallclass shift effecton self-employment: Total class shift* -3.6 -3..3 -.. Distributive 89.47 48..35 Together........12 Personalservices.....7 Distributive .67 -58..5 1...7 Extractive .... presented in table 11... Percentage of totalclass shift attributable to class shifts in each sector:t -24. -.3% overallto therateof changein selfemployment..31 Social-political services... ...2 -5.. Some sortofrestructuring seemsto be occurring within theoldersectors....... .it is usefulto in tables9 and 10 intothefull31-sector disaggregate theresults typology. 1003 This content downloaded from 186.. Transformative 1... 17...64 39...08 48... pp.2 57.... -9.. ...2.0 -4..4.5 -2........0 -16...7 Social-political -1.. theproportion ofself-employed grewmost in construction as well(Hagelstange 1986.28 Extractive .8 -1. the latter + 1..51 5.62 Business .88...... These results.... 238-39)..... 24...2.... thesetwo 3 It is interesting to notethatin mostEuropeancountries between 1960and 1982..1 -1. thecontribution of each sectorto the in thispartof the table are calculatedby dividing t The entries totalclass shift by the totalclass shift.6 -1.... that self-employment is growingmuch more rapidlyin the traditional core of industrial societythan withinthe newerpostindustrial services.60 ...77 6.40 41....7 -....82 ... 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .....13 14.. rankorder theoverallcontribution of detailedsectorsto the changein self-employment ratesfrom the largest positivecontribution to the largestnegativecontribution....

97 on Mon.0 1C. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .l 0 0 - t- 0 o~~~~~~~~~~~~~~~~~~ce cl.0 to -.6.-' t 00000 le @ to@@ le 00 11 @@ o ?cn o P4 4 0 Va B UU X EE? z EO > o gV S o 8 o o o% ~~~~~~~~o C C o 'oI_ ' o oo s oo ooooo o oo 0 Qo bOv o Q z 1004 This content downloaded from o) 0 0 o u o Ez Z M0 Xa = u o0a= f clO I.

_ 0 - .-1inin5 This content downloaded from 186.CI t. 5 .)C' .-)00 0or000 r C. o'e o in r.6.=l -q In 00 CD CDsoO~ o e? CD oo- (U 0 _ 1 1e | 00 a 00 ._~~~~~~~~~~00 S. 0 0g&0 to C' o v .11 in R . cl.97 on Mon. ^ A =_ .88.4~~~~~~~ to 'I 0 o o o o o t t e N .o o q:0 o cr._ g 6 4 oJ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 Q o O O -~~~~~~~~~~~~~~~~~~4 C 4t) 1):l n QOt t I ==E I > N t o e oom= 3wq e o m o oo q: NN N mom Q >s ^ o Ch 0 in 0 00lo C. g f o 0 o w2 4 .g C.o1 a. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .

legal. andtransportation. and professional sectors: legal.6. banking. V. industrial of 3. and contrast sectorsthat would be seen as centralto postindustrialism thatare at thecoreoftheolder ofall thesectors themwitha combination thereis an sectors theindustrial we findthatwithin economy.thereare negativeclass shift services. education. we have defined thisaggregate postindustrial sector as business services.American Journal of Sociology to the accountfornearlyhalfof the overallpositivecontribution sectors howforthesetwo sectors.government services. and professional services.0%. Taking shift effects 55% ofthetotalpositivesectoral we finda positivesectorshift all the postindustrial servicestogether. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . chemical. of effects rate.Businessservices.are clearly The sectoralshifteffects on self-employment. metal working. In conare added. anchoredin postindustrial accountforover together services. and legal.medical and healthservices. sectors yielda negative effect of 5. miscellaneous manufacturing.the sectoraleffects sectorshifteffect are declinein self-employment accountforthe reversalof the historical rootedin postindustrialism. whereasthe combinedindustrial that may of 1. callypostindustrial If we combine all thespecific education. The sectors at the coreoftheindustrial economy are construction. and medicalservices and professional on self-employment. textiles.the positivesectoreffects withinthe transformative alone accountsforgreater sectors. withinsectors. and medicaland healthservices.2%. engineering.there analysespresented Takinga liberaldefinition of what constitutes a postindustrial service. foodprocessing.97 on Mon. 36 1006 This content downloaded from 186. engineering.88. the sectorshift servicesabout 75% comes from and between theindustrial difference is a striking there More generally. expansionof self-employment be primarily a postindustrial process. sectors. whereasforbusiness comes fromthe class shift self-employment effect.communications.are entirely effect.machine building. welfareservices.then.36 The effect class shift trialservicesthereis an overallnegative does notseemto therefore. utilities. CONCLUSIONS AND UNRESOLVED ISSUES ofthevariousdata standout amongtheresults Four generalconclusions is strong evidencethatthenumerical here. insurance. The patterns self-employment 95% ofitsinputto increasing forconstruction different: ever. however. ofthepositiveclass shift thana third increasesto Clearly.Construction tratedin postindustrial manuWhenmiscellaneous effects. whereasamongall postinduseffect overallpositiveclass shift of 1. thefigure and machinery facturing of prototypiwithina number effects trast. sectorsof the economy:whereas the positiveclass shift postindustrial in the various industries are concentrated on self-employment effects are concensector.First.0%.

p. particular kindsof activities. Dale (1986) has argued.Third.butmuchoftheapparent raisenominalself-employment strategies of particular changes in systemsof classification expansionrepresents underproperly thana genuineexpansionofself-employment jobs rather stood. p. forexample. Sabel 1982. ployment within postinincreasing is generally notbecause self-employment effect. 171). 309-12). it appears that self-employment sectorsof the economyin industrial withinthe older. Empiricalstudiesofthe in textiles. to self-employment unemployment ments ofpeoplefrom has been on self-employment of unemployment The traditionaleffect in thepostwarperiodand in any case does notaccountforthe declining of since the mid-1970s. employers p. the growth increasein self-employment servicesdoes appear to explainthe expansionof self-empostindustrial a directsectoralchange through but thisis entirely partially.a number sectors oftheeconomy.that much apparent"selfto hireworkers under is simplya new way foremployers employment" and thelike. more traditional and miscellanenoticeable in construction recent years.6. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . contemporary in the transformative sectors of First. (Davis 1986. Marsh. thiscessationof the historical modestly movepettybourgeoisieis less a directconsequenceof countercyclical thanin thepast. Fourth.88. Rainnie 1985. subcontracting.This is especially and transportation. Pahl 1984. subcontracting. p. Such rates. 221.PettyBourgeoisie of history thathas markedthelong-term bourgeoisie declineof the petty stoppedand perhapsbeen Americancapitalismhas at least temporarily declineof the reversed. machineengineering.Second.97 on Mon.The expansionof selfchemicaland textileindustries is nota posttherefore. responseto growing of the late 1960s. and to the labor militancy factories mass-production (Piore Italian employers pursued a policyof full-scaledecentralization and Sabel 1984. firms relianceby UnitedStatesand Britainindicatean increased contemporary and out-sourcing on sweatshops.the increasein self-employment to bypass unionsand restrategies employer the economycould reflect workercontrol in the duce wages. For example. dustrial on literature by therecent are suggested dualism"explanation "industrial trendsin advanced capitalisteconomies. but is also true in machinery ous manufacturing have also occurredin the towardself-employment Slightpositiveshifts and in utilities. schemesofhomework. within employment of segments feature ofmoretraditional processbut a structural industrial the economy. the possible The data in thisstudydo not allow us to exploredirectly intraditional within forthisexpansionof self-employment explanations to the ofalternatives However. pp. 156. Brusco 1982.the long-term of small artisanal of a dense network producerswas the establishment and so on. Sassen-Koob 1985. 209. has grown dustrial sectors. In to smaller outcome of subcontracting Emilia-Romagna. 1007 This content downloaded from 186.

and even communist leadersin the Emilia-Romagna region ofItaly(Pioreand Sabel 1984."37 1008 This content downloaded from 186. The Reagan era has seen increased as wellas ideological support material the 240-41). and public sectorjobs (e.g. If thisexplanationis correct. von in postwar Saldern1979).pp. expansion. 228-29).88. Mayer 1985. p.p.antimonopoly to the preservation. it would be expectedthat verylittleof the expansionof would be would be amongsmall employersbut.rather. strictly politicalfactors(such as agricultural and apprenticeship conlegislation. 80. it could nevertheless economy.Berger1981. employment opportunities p. Many people may because oftheabsenceofgoodjob altertherefore enterself-employment natives. 37 The taxadvantages ofsuchreclassification include exempting employers from payingmostbenefits and socialsecurity taxes.Many forgood jobs in the industrial decliningopportunities commentators have arguedthatmuch of thejob expansionin the wage jobs in the service on low-paying labor forcein the 1980s has centered coreindustrial whilemuchof the declinehas been in well-paying sector. thederegulation markets. by state forself-employment and stateand community sectionsof thewelfare development significant which could increase selfhave been privatized. geoisie.97 on Mon. and Matheson (1981) found that a thirdof the formally for industry workedexclusively employedworkersin the construction contractors and providedonly theirown labor. 47). subsidies. preneurship. Moreover. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . p. pp. Davis 1986.Christian-Democratic and Gaullist governments Italyand France(Weiss 1984. 209).notsimply because oftheabsenceofjobs as such. (Davis 1986. 102." employers to reclassify bourmeaningful expansionof the"petty does notreflect a sociologically in Second. theItalian and German fascists (Winkler 1977. In such cases thereis themfromwage workers.Winkler 1983. 255). concentrated petty protectionism or Third.S. Self-Employment assistanceto the unemployed to become entrepreneurs [Mayer 1985]).American of Sociology Journal selfHeady.Burris1980).. 38 Various in regimes have promulgated laws to propup smallbusinesses and artisans order to consolidate II in Imperial political support: Wilhelm Germany (Rohl 1967.38Many policyinitiatives as "government-initiated entre1970sto thepresent can be characterized offinancial tax breaks. p. self-employment in the individualself-employed bourgeoisie.While fortax reallyverylittleto distinguish for oflaborrelations itmaybe advantageous purposes and considerations this part of theirlabor forceas "self-employed. employment programs in sectorssuch as construction (Mayer 1987." including Act of 1985 (whichaimed at providing and the U.6. while we have shownthatthe increasein self-employment responseto the 1970s cannot be attributed to a directcountercyclical responseto be a structural unemployment rates.or declineof selftrols)oftencontribute in theUnitedStatesfrom thelate relief.

PettyBourgeoisie Finally.88. It might also be arguedthatincreasing self-employment could be partiallyan indirect effect of the increasing of womenin the participation labor force. Self-employment generally bringswith it more risksthan wage-labor employment. 1009 This content downloaded from 186. If those risks were to decline. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . writing The Americanclass structure appears to be in a periodof significant As noted by Wrightand Martin (1987). more people mightattemptto starttheirown businesses.97 on leasttemporarily.6.A mechanism that could reduce risksto a householdwould be forone memberto hold a stable wage-earner job whileanother The increasing attempts self-employment.As the baby boom generation entersmidcareer. strongtendency toward proletarianization withinthe wage-laborforce in the 1970s. one mightexpecta temporary increasein self-employment. therefore.aftera certain amountof savingshas been accumulated. tionintothe age rangeof maximum likelihood Selfemployment is mosttypicalin mid-to late-career stages.therefore. prevalence oftwo-earner households.This increasecould reflect theentry of self-employment.We also now see that thatexistedin the 1960swas reversed the decline of the pettybourgeoisiethat had persistedsince the 19th has beenhalted. If thisdemographic explanation is correct. century Explaining themechanisms thatare generating thesechangesis essentialifwe are to understand the trajectory of the Americanclass structure intothe nextcentury. the structural reorganization.thereare demographic factors thatmight accountforpartof theincrease in self-employment oftheindustrial within traditional sectors of the baby boom generaeconomy. thentherate of self-employment shoulddeclineagain as thisgeneration ages further. could be partially underthe expansionof self-employment.

066 .104 ..112 ..092 .168 .144 .103 .178 .098 .060 . 1960 ...124 ..106 . 1955 .058 .059 .117 forincorporated self-employed.175 .057 .122 ..086 ....122 .....073 + Self-employed Unpaid Family of as Proportion Labor Force .059 ..069 .100 ...136 .067 .076 .118 ..135 ...152 .. 1973 .070 .110 .147 . SOURCES.065 . 1967 .149 . 1953 ..078 . 1975.142 ..065 ..88.058 . 1971 .... 1970 ..078 . RATES OF SELF-EMPLOYMENT. 1974 ..068 ..075 .091 ...102 ...128 .175 .119 .. 1977 .063 . 1957 .112 .085 ....113 .062 .176 .058 ..117 .088 ...067 ..112 .. 1968 .101 .111 ..192 ..112 .117 ..139 ..S. 1966 .070 .102 .106 ..110 . 1961 .058 ... 1976 ..065 .. 1969 .064 ... 1980 ..065 .167 .097 .058 ..068 ..154 .179 .087 ..069 ... same corrections 1010 This content downloaded from 186.134 ..079 .099 ....... 1949 .067 . 1951 .101 .077 .... 1.101 . 1963 .6.065 .130 .114 .064 .099 .-Same as in fig...116 .....102 .064 ...137 .206 .082 ..074 .114 ..172 ..122 Year 1948 .152 .131 .. 1950 ..095 .088 ..071 . 1959 ..158 .118 .114 ..071 .115 ..081 .067 .100 ..119 . 1983. 1952 . 1964..110 ... 1978 ..204 . 1956 .102 ..102 ..070 Self-employed as Proportion of Labor Force . Self-employed as Proportion of Adult Population .152 . 1958 .183 .. 1962 ..062 .117 .083 ..100 .....164 . 1981 .100 . 1972 .060 .058 .112 . 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . 1954 .113 ..067 ..118 .. 1965 .110 . 1948-84: CORRECTED CPS ESTIMATES USED IN TIME-SERIES ANALYSIS + Self-employed Unpaid Family as Proportion of Adult Population ...125 .104 .158 .072 ...97 on Mon.158 . 1982 .103 ...064 .107 . 1979 .086 ..APPENDIX A TABLE Al U.071 .. 1984.063 .091 .

97 on Mon. 0 v O OoxCD C) x UI 0 z X~~~~O F1 * * s 4-* o * X~~~~~~~~~~~~~~~~~rr _~~~~~~~~~~~~~~~C tin U~~~~~~~~) ?~~~~~ z . =::.. .00 tm0 C0 ooo00 ooo0 C) C) C0 CD C I.6.88. a tL w ? Cd :1bb>> Q Q~~~~~~~~~~~~~~~01 A bb>> 0~ This content downloaded from 186. . . .N e ot 0 ON N oo 0Ox O 00 0 0 ONe0 z * * ON *O*N s _oe~. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . . .. .I CI O N 00 O- 'I D . . ...

ON 00 in 0 .C.0 t- ON 400 C14 re) ee) il c'n 00 C14 re) 0 00 re) re) C) 0 C re) as vq re) C) 0 CD 0 re) CD C) C) 00 re) Ci re) re) ee) re) C's .:0) lul = (L) = u 1012 This content downloaded from 186.0 0 0 cd CD CD cd -'A CD 0 0 0 0 0 IL) 0 0 (L) CD IL) E-4 E-1 E-4 E-4 9.88.97 on Mon.q 0 0 0 lo.40 7.I- 00 0 00 4- C41) It er) 00 00 111cf) 1.) . 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . -w 4-i o cd 0 C"s 40 CD Cbdo 0 0 1.6.

) 000 re) CD CD C) C) C) C) C) C) 00 C:) I- C re) ON C) C) C) C) C) C) C) 00 00 C) C) C) C) CD C) C) ICD ON ON C) C) C) CD C) C) C) CD Im C) 00 ON oo 1-4 C) C) C) m C) C) cl. .6. . + CD :>% Cd -cl : : : : : Cd CD cwd CD CD Cd C'.0 9: tn .88. . C) 00 C) C) 00 m C) It ON 14. . . . . 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .10 00 00 00 00 0 00 er) CO. .A CD CD 4-i 3-4 CD cd > 4-1 CD 0 0 1 : -W -W : 0 > CL IC.97 on Mon. 00 .d O ID v v v IL) 1013 This content downloaded from 186. . . u-o CD cd -. . .

and Roger Burrows. Daniel. Patricia. Journal ofEconomics Burris. 1982. New York: St. 1978. 1986. 1950. Mitchell. Val.Roger Establet. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . Dieter. Bell." Social Praxis 7 (3/4): 147-79.1985. edited by Frank Bechhofer and Brian Elliott. An Artisan Crossick.: Doubleday. and James McKinnon. A History StatesCensusandLaborForceChange: Conk. Bogenhold. Cuneo.88." Monthly LaborReview107:7.1979. Society:KentishLondon. and Isabelle Bertaux-Wiame. Zur Soziologie Produktion. and the American Workers Chinoy. and H. "Social Class and the Self-Employed. Eugene H. 1973. "Unpaid Family Workers: Long-Term Decline Continues. "Economic Crisis and the Petite Bourgeoisie in Europe during the Nineteenthand Twentieth Centuries. Sebastiano. Elite in Victorian 1978. 1981. "The Petite Bourgeoisie in Late Capitalism. Bertaux. La petite bourgeoisie en France. . eds. Daniel. 1978. Geoffrey." Monthly Bregger. The Coming ofthePost-industrial Society. Beach. 1984. Daly." Black Enterprise8 (9): 37-38. Ely.John E. Angela. ." Studiesofthe Pp. 1986."Sociology 20 (3): 430-34. Monthly 1014 This content downloaded from 186. Automobile N. Martin's. "The 'Emilian' Model: Productive Decentralization and Social Integration.American Journal of Sociology REFERENCES Alderfer.1985. "The Sociology of Petit Capitalism: A Trend Report. Alston. "A Maximum Likelihood Procedurefor Regressionwith Correlated Errors. "Artisanal Bakers in France: How It Lives and Why It Survives. 1985. Paris: Maspero. New York: St. 1948-62." In The Petite Bourgeoisie: ComparativeStudies ofthe Uneasy Stratum. and Jacques Malemort. Frank.E. 1978." Econometrica 46:51-58. The United of Occupation Statistics. Christian. Berger. Baudelot. "Self-employedWorkers: An Update to 1983." Le mouvement social 127:3-28. James. 57. 1980. Carl J." Sociological Review 26:57-88." Annual Review ofSociology11:181-207. Journal ofSociology Curran. and Brian Elliott. Ann Arbor: UMI Research. 1871-1914. Martin's. in the United States." LaborReview86 (October): 3-5. Dream. 1984. 1982. 1981.97 on Mon. New York: St. The PetiteBourgeoisie: tum.6. E. Brusco. Economics of American Industry.edited by Frank Bechhoferand Brian Elliott. Comparative StudiesoftheUneasy Stra. Charles. 1984. Garden City. New York: Harper & Row. "Has the Traditional Petite Bourgeoisie Persisted?" Canadian 9 (3): 269-301." Sociology 20 (2): 265-79. Martin's. 1840-1880. Becker. 1955. "Self-Employment LaborReview86 (January): 3 7-43." Social History 10:95-104. "How to IncorporateYourself and Make It Pay. New York: McGraw-Hill. Blackbourn. Roland.Margo. David. 1981. "The Uses of the Traditional Sector in Italy: Why Declining ClassesSurvive. Dale. B."Cambridge 6:167-84. Bechhofer. 1963. 1974. 71-89 in ThePetiteBourgeoisie: Comparative Uneasy Stratum. "Class Formation and Transformationin Advanced Capitalist Societies: A Comparative Analysis. "Le petitebourgeoisieet l'etat dans l'Allemagneimperiale.. Die Selbststdndigen: dezentraler Frankfurt am Main: Campus.Y. London: Croom Helm. "The Voice of Small Business and the Politics of Survival. Suzanne.

Social Mobility Oxford: Oxford Press.1984. Der Mittelstand in der kapitalistischen Grunberg. Eurostat.Das Wachstum derdeutschen Wirtschaft seitderMitte des 19. 3d ed.Die deklassierte Klasse: StudienzurGeschichte und Ideologiedes Kleinbiirgertums. Industrial London:Macmillan. 1975. Gagliani. Stuttgart: Gellately. 1985. und Politikvon Haupt. "Self-employed Americans: Their NumberHas Increased. 1984.97 on Mon.1974.: Government Printing Office.Econometric Methods. Huber.Die verlorene Unschuld derOkologie: Neue Technologien und superindustrielle Entwicklung."How ManyWorking Giorgio. no. Robert. 1980. T. 1986.and 1987.PettyBourgeoisie Davis. Frankfurt am Main: Fischer. in 10 EGHagelstange. Robert M. Gesellschaft: Eine okonomische und soziologische Untersuchung. Linder.Madison:University ofWisconsin 1. Munich: Handwerkern undKleinhdndlern DTV. Fenstermaker. 1986.Employment and Unemployment. Jefferson." American Review49. John." 17(2): Zeitschrift 143-51. Kautsky. 1015 ogy 87 (2): 259-85. J. 1985." Researchin Sociology ofWork: Peripheral Workers 2:261-74. New York:McGraw-Hill. Lincoln. Frankfurt am Main: Fischer Taschenbuch. This content downloaded from 186. 1965. 181-230 in Prisoners oftheAmerican Dream. Theodor.1985. von Klassenstrukturen Thomas. Karl. Heinz-Gerhard.Cambridge: MIT Press. 1978."The Political Economy ofLate Imperial America. University oderRenaissance Statistische . Hoffman. "Die Entwicklung denUSA undKanada von 1960bis 1982vordemHintergrund derMarxLiindern."Habilitationsschrift.London:Verso. Jahrhunderts. Stuttgart: Dietz.After Society? and Class Structure in ModernBritain. Scott. Sociological Emil. Historical Statistics oftheUnited States.Londonand Beverly Hills: Sage.6.Die sozialeSchichtung des deutschen Volkes. 1980. 1985. New York:Library ofAmerica."Answers and Observations forDemeunier's Article on theUnitedStatesin theEncyclopedie Methodique. Annette. 1984. schenTheorie. 3 (June): 323-34. Die Radikale Mitte: Lebensweise in Deutschland seit1848. Jenkins. J.1932. Leppert-Fogen.88. Johnston. "Niedergang der Selbstandigen? Daten derSoziologie zurEntwicklung in derEG undin Nordamerika. "Small Is Bountiful: Labor Marketsand Establishment Granovetter.BeyondMechanization: and Technology industrial Age. 1932. Thomas. Leipzig:Hirschfeld. Deborah. Berlin:Springer-Verlag. I.1986. Walther G. 1983.Joseph.New York:Current Literature.1982.1984." Pp. 1902.Washington. Luxembourg: Statistical Office oftheOrganization forEconomic Cooperation and Development. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . "Changesin Estimation Procedure in the Current 2 (February): 7-9." Pp. 1988.C.Procedural History ofthe1940 CensusofPopulation and Housing. Fain.(1786) 1984. Population Survey Beginningin January 1985. University Mark.Lifeand Works ofAbraham Lincoln:Centenary Edition."Self-Employment as a Cyclical Escape from Unemployment: A Case Studyof theConstruction Industry in theUnitedStatesduring thePostwar Period.1890-1914.ThePoliticsofEconomic Despair:Shopkeepers and German Politics.1980. ofDuisburg. Abraham. in a PostWork Hirschhorn. Goldthorpe. Peterson. Classes?"American Journal ofSociolGeiger. Marc. (1865)1907. Gershuny. Larry." Monthly LaborReview103(November): 3-8. editedbyMerrill D. 575-92 in Writings. no. Das Erfurter Programm in seinemgrundsdtzlichen Theil eridutert vonKarl Kautsky. 1974.editedbyMarionMillsMiller. D. Size. 1981. Mike. Enke." Employment and Earnings 32.

L'informatisation tation francaise. Capital. Michael Reich. "Une filierede mobiliteouvriere:L'acces a la petiteentreprise artisanale et commerciale. A. Piore. and Saskia Sassen-Koob." International ofUrban 55-81 in Dualism and Discontinuity in Industrial Societies. Work hdndler-Bauern. London: Batsford. Cambridge: Harvard UniversityPress. Sabel. Big Problems: The Political Economy of Small Businesses. Mayer. Joseph D. Portes. 1016 This content downloaded from 186.: Heath. "Arbeitsbericht zum Projekt 'Stadtteilinteressen und Soziale Bewegungen."Pp. Piore. G. lated by Lothar Boepple fromthe 1962 French edition. New York: McGraw-Hill. CharlesF. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions .Traite d'economie marxiste. Simon. Lexington. Marxistische Wirtschaftstheorie. 1979.88. Michael J." Universityof Illinois Bulletin 59 (91): 1-100.Paris: DocumenNora. Philips. Edwards. 2d ed. 1967. P. vol. Ernst. Matheson.97 on Mon. Roemer. Robert N. E. Frankfurt:Campus. "Notes fora Theory of Labor Market Stratification. and Charles F. and J. September. translatedby Agnes Schwarzschild.. 2 vols. "A Report on Self-employedAmericans in 1973. EconometricMethods and Economic Forecasts." Revue francaise de sociologie 18:25-45. Saskia. Samuel. PublicPapersofthePresidents oftheUnited States:RonaldReagan. 1978.: GovernmentPrintingOffice.edited by Richard C. Mass. R. 1981. 1977. Gordon.D. 1975. London: Her Majesty's StationeryOffice. Sabel.6. 1982. Marsh. Labour Mobility in the Construction Industry. Rubinfeld. (1867) 1977. Heady. E. "Making It Underground:Comparative Material on the InformalSector in WesternMarket Economies. Sassen-Koob. London: Routledge & Kegan Paul. " 'Quarry Roughs': Life and Labour in Headington Quarry.editedby Suzanne in the TheCrisisofGovernment Bismarck: R6hl. 1962. Samuel. Restructuring and the Survival Strategiesof the 39. edited by R. Berger and Michael J. Mayer. 12550 in Labor Market Segmentation. and Alain Minc. Rosa. Pahl." In Village Life and Labour. The Accumulation of Capital. 1985. and David M. .Book 1. John E. Oxford and New York: Blackwell." Pp." American Journal of Sociology 93. 1890-1900. "The Self-Employed in the United States. Divisions ofLabour. (1962) 1972. "Informalization. Pindyck.John C.American Journal of Sociology Luxemburg. "Small Firms. and Daniel L. Cambridge: Cambridge UniversityPress. 1 (July): 30-61. Margit." Prokla 68:73-89. New York: Vintage. Raphael. Al. 1982. 1987. sibilities forProsperity. 1981. Nonna. New York: Basic. Ray. de la societe. bridge: Cambridge UniversityPress. TransMandel. 1984. Alejandro.C. 1985. 1984. im "Dritten Reich":Handwerker-EinzelAdelheid von. A General Theory of Exploitation and Class." Monthly Labor Review 98 (January):49-54. Mingione. Rainnie. Marx.Robert S. 1983. 1860-1920: An Essay in Oral History." Capital and Class 25:140-68. "The Technological Foundations of Dualism and Discontinuity. Washington. Frankfurt am Main: Suhrkamp. (1913) 1951. The Second Industrial Divide: Pos- 7 (3): 311andRegional Research Journal Working Class. London: Routledge & Kegan Paul. Michael J. "Stadtische Bewegungen in den USA: 'Gegenmacht' und Inkorporierung... "Changing Composition and Labor Market Location of Second Reich. 1987.Germany without Camand Politics:TheDivisionofLaborin Industry. 1983. 1975.Mittelstand Saldern. no. Karl. 1985. 1975. 1. Piore. 1980.' "Unpublished reportto Deutsche Forschungsgemeinschaft.

1972. ClassStructure: Touraine. New York: Random House. 1960-1980.. Scase.S. The EntrepreneurialMiddle Class. Linda. 1960-1980. Wolpe. "Mini-Mills: A New GrowthPath forthe U. Steinmetz. 1983a. August. London: Croom Helm. 1978.1950: Public Use MicrodataSample 1929-1965. "The Governance Mechanisms of the Automobile Industry:Are They Adequate forGlobal Competition?"In The Governanceof the AmericanEconomy. 1872-1972. 1940: Public Use Microdata Sample (MRDF). Economy." Pp. thesis.S. J. Lindberg (forthcoming).97 on Mon. 1940. Employment and Earnings. Alain.New York: Praeger. Gottingen:Vandenhoeck. and R. Washington.C. Volkov. Singelmann.D. 1982. Princeton:PrincetonUniversityPress. "The Italian State and Small Business. Scherrer. 1971. London: Routledge & Kegan Paul. 1873-1896.and Leon N." In Faschismus als soziale Bewegung. Accounts . . Harold. 47-67 in New Social Division of Labor. The Real WorldoftheSmall Business Owner. 1940. Rogers Hollingsworth. Master Artisans. Washington. 3 ofHistoire ." Archiveseurop6enesde 25:214-41. and the Toutain." M.Joachim. Washington. "Economic Crisis and Collective Action: Working-Class Protestagainst Unemploymentin Paris duringthe 1880s. sociologie Heinrich Demokratie und Nationalsozialismus: Winkler. Census of the Population. Goffee. George. Szymanski. Department of Commerce. U. Introductionto The Articulationof Modes of Production.S.88.: Academic. D.D.'" . U. (MRDF). Cologne: Kiepenhauer & Witsch.edited by WolfgangSchieder.C.: Bureau of the Census. quantitativede l'economiefranCaise.: GovernmentPrintingOffice. J. 1983b. Bureau of Labor Statistics. U.NationalIncomeand Product oftheUnited States. Washington.S.Christoph. 1989. TheRise ofPopular Antimodernism Shulamit.: Bureau of the Census. Denise. Various years. .D.: GovernmentPrintingOffice.1980. 1985. Various years. Vol. London: Croom Helm. Paris: ISEA. 299-322 in Hispanics in the U. Bevolkerungund Wirtschaft. Stuttgart: Kohlhammer. Weiss.S. 1977. by Harold Wolpe.C. im 'DrittenReich. "Der entbehrliche Stand: Zur Mittelstandspolitik Archiv fur Sozialgeschichte 17:1-40. "Evolution du nombreet du revenu des commercants et des artisans de 1953 a 1977. StatistischesBundesamt. in Germany: The Urban 1978.S. 1963.C.PettyBourgeoisie Hispanic Immigrantsin New York City. A Critical Perspective. Bureau of the Census. edited by George Borjas and Marta Tienda. edited by Bryan Roberts.Albert. Die politische in der Weimarer ReEntwicklung vonHandwerk und Kleinhandel 1017 This content downloaded from 186." Pp. Ruth Finnegan.La population de la Francede 1700 a 1959. Census of the Population. Van Regemorter. "The Process of Occupational Change in a Service Society: The Case of the United States. R.6.C. edited by John L. Steel Industry?"Journal ofEconomicIssues (in press). 1984. The Post-industrialSociety." Cahierseconomiques de Bruxelles 89:3-23. Washington. .: Bureau of the Census. 1972. Orlando. publik. Instructionsto Enumerators: Population and Agriculture. Manchester: Universityof Manchester Press.and Marta Tienda. in Cahiers de l'institutde science economique appliquee. Singelmann. 1983. 1988. Approaches to EconomicLife: EconomicRestructuring. Fla. Department of Labor. 1981. 1983. 1980. Campbell. 1983. and Duncan Gallie. Unemployment.Joachim. University of Wisconsin-Madison. Mittelstand.-C.D. "Mittelstandsbewegungoder Volkspartei? Zur sozialen Basis der NSDAP. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . Beverly Hills: Sage. From Agriculture to Services.

Class. Bernard. Class Structure Survey. 1979. Crisis and the State.88. Finland Survey.6. File: Multi-nation Merged and Class Consciousness: 1986. Structure." AmericanJournal ofSociology in the AmeriWright.London: New Left."American Zarca.97 on Mon.1960-1980. 1980. Mich.: S176-S209. and Bill Martin. 1980. no.SwedenSurvey. 20 May 2013 16:40:21 PM All use subject to JSTOR Terms and Conditions . 1018 This content downloaded from 186. Consortiumfor Institutefor Research on Poverty.Erik Olin." Actes de la rechercheen sciences sociales29 (September): 3-26.Canada United StatesSurvey. Madison: Universityof Wisconsin. 1985.American Journal of Sociology Wright. 1983. Distributedby Inter-university Political and Social Research.Erik Olin. 1 (July): 1-29. and JoachimSingelmann. London: New Left.Erik Olin. ofSociology Journal can Class Structure. "Proletarianization 83. of theAmericanClass Wright. "Artisanat et trajectoiressociales. Classes. 1982. 1978. 1981 (MRDF). Ann Arbor. suppl. 1982. "The Transformation 93. 1987.Norway Survey.