Self-Employment Entry Across Family Transitions: Household Capability Reallocation Over the Life Course

Abstract

This study examines how major family transitions—marriage, childbirth, divorce, widowhood, and the co-occurrence of marriage and childbirth within the same observation interval—are associated with entry into self-employment as households reallocate risk, care, and income responsibilities. Using longitudinal Canadian data from the Longitudinal and International Study of Adults (2012–2020), it draws on life-course theory, household bargaining perspectives, and the capability approach to conceptualize self-employment entry as a process of contingent capability reallocation rather than simply a reflection of stable entrepreneurial preferences. The findings show that identical life events generate divergent entry responses across gendered breadwinner roles, caregiving demands, and life stage. Marriage and childbirth are positively associated with entry on average, but these associations are contingent: marriage is most strongly associated with entry among newly married secondary-earning women, while childbirth suppresses entry for primary-earning mothers and attenuates for new fathers as caregiving intensity rises. Divorce shows no uniform association: it is positively associated with childcare-expense responsibility but negatively associated with prior primary-earner status. Widowhood is associated with reduced entry, with no working-age moderation. Finally, the co-occurrence of marriage and childbirth within the same biennial interval is associated with higher entry than either transition alone.