30-Year Study Finds Self-Employment Pays Off Only Through Incorporation for 12,686 Workers
Updated
Updated · The Conversation · Jun 14
30-Year Study Finds Self-Employment Pays Off Only Through Incorporation for 12,686 Workers
1 articles · Updated · The Conversation · Jun 14
Summary
A 30-year study of 12,686 people found self-employment often left workers no richer than salaried peers and less satisfied with life unless they built an incorporated business.
Incorporated owners earned more and reported higher life satisfaction than non-entrepreneurs, while solo unincorporated freelancers matched regular workers on income but lagged on well-being.
The research traced four career paths: 69% stayed in regular employment, 12% tried self-employment young then returned, 13% moved into it in midlife, and 6% remained self-employed for most of their careers.
Timing also mattered: lifelong incorporated founders earned the most, early starters reported the highest life satisfaction, and midlife starters delivered the best balance of income and well-being.
With 2.6 million Canadians self-employed and 59% aspiring to own a business, the findings suggest support programs should extend beyond launch to help workers incorporate, grow and survive.