The Influence of the Family in the Withdrawal from Self-Employment in Japan: Using the 2015 SSM Survey Data

Wednesday, 18 July 2018
Ichiro HIRAO, Osaka University, Japan
1 Aim
As the rate of self-employment has declined rapidly in Japan, we need to understand the mechanism of the withdrawal from self-employment. Although Takenoshita (2015) has already examined the withdrawal from self-employment from the familial perspective, I aim to back up his research questions using the 2015 SSM survey data (the national survey of Social Stratification and social Mobility of 2015). This paper examines how self-employers’ families, including the spouses and children, have influenced the withdrawal from self-employment.

2 Methods
For this purpose, I analyze Japanese self-employment with quantitative analysis, using the 2015 SSM survey data (the third delivered version). In the 2015 SSM data, there are variables regarding the respondents’ children’s gender and whether they live together, which are not in the 2005 SSM data. I focus on male and female persons who have the experience of self-employment in non-agricultural sectors. And I apply discrete logit models to the person-period data. The dependent variable is “withdrawal from self-employment.” And I used the categories: “closing a business” and “family reasons” from the variables of the “withdrawal reason” as competed risks of the models. Independent variables are marital status, children’s gender, children’s age, children’s co-habitation, and the variables related to respondents’ social stratification.

3 Results
The results show that male self-employers are likely to close their businesses after divorce, but are not likely to withdraw from self-employment in the case of having children with whom they live together. In line with the patriarchal ideology, Japanese self-employers tend to prefer male children to female children as their successors. However, according to the data, elderly male self-employers are likely to close their businesses, even if they have male children. Female self-employers are not likely to withdraw from self-employment after marriage, but are likely to withdraw from self-employment to concentrate on child rearing.