The rise in the number of self-employed workers in the UK has been par
alleled by increasing concern that the use of such 'peripheral' labour
may result in the operation of a dual-labour market acting to reinfor
ce segregation between 'good' core employment, characterised by higher
pay, fringe benefits and job security, and 'bad' peripheral employmen
t with adverse characteristics. In contrast, using evidence gained fro
m a survey of workers in the UK construction industry, this paper show
s that, for any occupation/level of skill, there are discrete advantag
es and disadvantages in both direct and self-employment. It is, theref
ore, argued that worker preference for a particular mode of employment
is the key criterion which determines the case for either relative ad
vantage or disadvantage. In particular, the evidence shows that the la
rge majorities of both direct and self-employed workers who prefer the
ir existing mode of employment undermines dualist conclusions of relat
ive disadvantage arising from self-employment per se.