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SELF-EMPLOYED AND
ECONOMIC POLICY
REFERENCE DOCUMENT

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INTRODUCTION

The purpose of this short paper is to set the basic framework for the seminar on self-employed
workers that will take place in Saint Sebastian on 23th June. Self-employment is a topic issue that
can be approached from many different points of view. Therefore, it deemed appropriate that all
reflections are aimed at specific objectives to facilitate obtaining converging conclusions. The
points developed in this document represent the general lines of interests.

We can consider as objectives of the day the answer to the following two questions:

● Having seen the Spanish, German and other countries experience, what proposals may
arise for improving public policies in relation to self-employed workers?
● Having seen the experience of different countries, and the great differences among them,
what proposals are recommended from the point of view of the representation of self-
employed worker/entrepreneur as sector as a whole? What are the advantages and
disadvantages of having representative organizations for self-employed as a whole? Is it
good the existence of different representations? What criteria can be raised on their
articulation?
OBJECTIVES

Self-employment represents a substantial proportion of economic activity, however, little has

been reflected on this sector as an economic agent or as a field of Economic Policy. Business
policies focus too much on capital companies, forgetting that self-employed entrepreneurs are a
key part of the economic fabric.

It is therefore necessary to analyze and propose macroeconomic (and public policies) conceptual
basis to enable new developments in Economic Policy take into account the different types of
enterprise.

There are a number of key questions that must be analyzed and answered in a systematic way. In
short, we could indicate the following three:

● What is the role of self-employment in the whole economy and what should be its
place in the field of economic politics?
● What are the elements that affect the efficiency of self-employment?
● What kind of public policies could have a positive impact on self-employment and
on its contribution to general social and economic objectives?

ROLE OF SELF-EMPLOYMENT IN THE WHOLE ECONOMY

More than twenty-seven million Europeans are self-employed, according to the European
Commission. However, it is difficult to get an overall picture of these workers as they form a
complex and diverse sector because of the heterogeneity of the group and the different national
references.

In this European context, self-employed have significant weight both in the Basque Autonomous
Community (110,000) and in Spain (over 3 million). This means that self-employment reaches
nearly 20% of the employed population, considerably higher than in other countries. According to
data published by the Social Security, since 2012, there has been a rising trend in self-
employment. However, it should also be noted that the economic crisis destroyed more than 3.5
million jobs, about 0.5 million of them on their own.
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There is a discourse, widespread in the last five years by public institutions, linking this type of
employment to entrepreneurship and entrepreneurialism. While the extension of self-
employment may be a sign of entrepreneurial dynamism, there is evidence to affirm that it may
also reflect lack of wage employment opportunities.

On the same line, specialized reports argue that nearly a third of self-employed is below the
poverty line in Spain (Alternatives Foundation, 2013). Among the working poor, one third are self-
employed with no employees, so that self-employed are more likely to be working in poverty than
employees. In addition, their working conditions are generally worse than those of employees in
terms of working hours and social benefits.

Nevertheless, it is necessary to not ignore the virtues of self-employment. We are looking at a type
of employment able to make the worker owns his work and capable of offering services directly
without intermediaries. Self-employment may be the ideal model to develop the career of
numerous professionals as well as the best way to offer certain services on the market.

In brief, adopting a panoramic view of the sector, it appears that in Spain and in the Basque
Country coexist two situations and two distinct segments: one segment subjectively poor, low-
income and informal; and another, more entrepreneurial, which makes active and efficient use of
the opportunities of self-employment.

PUBLIC POLICIES AND STRATEGIES AFFECTING SELF-EMPLOYMENT

The event focuses on legislation and public policies related to the self-employed within the set of
Economic Policies.

1. Self-employed workers statute

Scenario analysis created out of the reform of Self-Employed Workers Statute (2015) will take a
leading role. We will focus especially on the following points:

● Rights and du es
● Social benefits
● Quotes
● Unemployment
● Labour risks
● Temporary Disability
● Early re rement
● Family Reconcilia on Measures
● Regula on of the figure of the dependent self-employed

This regulation has been modified with three objectives: to facilitate the start of an ntrepreneurial
activity, support and help those who have already undertaken and improve the conditions in
which entrepreneurs pursue their activities. Our task is to determine the success or failure of
reform and identify areas for improvement.

2. Association Membership

The proliferation of associations of self-employed is a phenomenon of strategic relevance when

constituted as an interest group and gain weight to influence Economic Policies. Self-employed
associations have taken a significant role as social agent capable of claiming and represent the
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interests of freelancers and professionals to institutions, offering data, studies and proposals for
improving the situation of the group.

This is an advanced reality in the Spain when compared with other European countries. It is
interesting to reflect on the role to be played by these associations in representing and defending
the interests of the self-employed and in promoting such partnerships. It is also interesting to
reflect on the reasons why there are so notable differences in associative strategies in different
countries.
FINAL CONSIDERATIONS

Developed all these points and concepts mentioned along the event, we believe that we will
identify possible elements of improving public policies and partnership strategies for self-
employment.