The distribution of self-employment income in the United Kingdom, 1976-1991

This paper examines the pattern of UK self-employment income inequality between 1976 and 1991, and develops a simple model of the size distribution. Inequality measures are related to the parameters of this distribution, whose economic determinants are explained. It is found that the principal cause of rising self-employment income inequality over this period was a substantial increase in the heterogeneity of the self-employed themselves. In contrast, the increased numbers engaged in self-employment over the period seems to have had no discernible effect on inequality via the parameters of the self-employment income distribution.