The state of having a job, but not having an employer.
Benefits:
- More flexible work schedule.
- Generally more money.
- Typically allowed to choose your projects.
- Future employers won't question job-jumping like they would if you were a real employee changing jobs frequently.
- Which leads to gaining a wide variety of experience.
Disadvantages:
- Lack of stability.
- Usually no benefits (retirement, health insurance).
- More sensitive to economic downturns.
- People at the mall wonder why you're not working. (or is that a benefit? :))
See also: ProgrammingInsideTheHome, TeleCommuting