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Self-employment and the nature of the contemporary Canadian economy Arai, Alfred Bruce

Abstract

Recent transformations within modern economies have often been discussed under the concept of “restructuring”. However this term, despite its widespread use in sociology, has little explanatory power. What is needed instead is a consideration of how restructuring has taken place. Three major theoretical positions which attempt to provide this understanding are Marxist monopoly captialism, post-fordism and post-industrialism. Each of these paradigms provides a different understanding of the nature and operation of contemporary capitalist formations. My purpose in this thesis is to determine which of these different viewpoints is most applicable to the Canadian situation. I will do so through an examination of changes in the self-employed sector of the Canadian economy since 1960. The self-employed sector, besides being of intrinsic interest because of its recent attention by politicians and the popular media, is an important testing ground for the relative validity of the above theories in the Canadian context. Each framework is consistent with a set of well-defined and contrasting predictions about what should happen to the overall size of the self-employed sector, as well as expectations about the direction of ascriptive inequality, both within the sector and in the larger society. Using time series regression procedures, declines and increases in the size of the entrepreneurial sector over the last thirty or so years are documented. In addition, the importance of increases in the sector is examined by modelling the effect of unemployment on self-employment. Predictions about ascriptive inequalities are tested through an investigation of earnings functions within the self-employed and employed populations. The results of these analyses suggest that a post-fordist understanding of the contemporary Canadian economy is most appropriate. Self-employment has clearly increased since 1960, and ascriptive inequalities, particularly by gender, have persisted throughout much ofthe latter half of this period. The implication of this is that in order to understand the larger processes shaping our economy, as well as the nature of work beyond self-employment, we are most likely to find answers in discussions about post-fordism.

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