Using data from the 2006 Census of Population and the 2011 National Household Survey, transitions from wage and salary employment to self-employment were examined among new mothers. These new mothers are women who had no children under the age of 6 in 2006 when they were in wage employment, but had such children in 2011.

The study shows that new mothers have a higher probability of making the transition from paid employment to self-employment than other women. When a wide range of personal and family characteristics were taken into account, the probability of making the transition into self-employment was 1.2 percentage points higher for new mothers (5.3%) than for other women (4.1%) between 2006 and 2011 .

The weekly work hours of the new mothers who make a transition to self-employment become far more uniformly distributed than their hours were when they were wage earners. Also, after having children, average weekly hours of employment declined for new mothers who became self-employed and for those who remained in wage employment. Those who remained in wage employment tended to be employed either just a few hours per week or almost 40 hours per week.

For a substantial share of new mothers, the study found that the transition from paid employment to self-employment involved a change in occupations. New mothers who were paid employees in business, finance and administrative occupations in 2006 were more likely to work in a different occupation in 2011 after becoming self-employed. Conversely, over 80% of new mothers who were paid employees in health occupations in 2006 continued to work in these occupations in 2011 after becoming self-employed.

Read the full study here: Balancing Family and Work: Transition to Self-employment Among New Mothers