Businesswomen in Germany and Their Performance by Ethnicity: It Pays to Be Self-Employed
AbstractIn this paper I assert that the entrepreneurial spirit can also exist in salaried jobs. I study the determinants of wages and the labor market success of two kinds of entrepreneurial women in Germany – self-employed and salaried businesswomen – and investigate whether ethnicity is important in these challenging jobs. Employing data from the German Socioeconomic Panel I estimate selection adjusted wage regressions for both types of businesswomen by country of origin. I find that self-employment offers businesswomen a lucrative avenue with higher monetary rewards, albeit for a shorter spell. If salaried businesswomen went into self-employment, they would receive considerably higher wages and for at least 30 years. However, if self-employed businesswomen went into salaried jobs, their wages would decline, suggesting that it is the self-employment sector that offers better opportunities and monetary success. Self-employed women in Germany fare well and most importantly, success does not depend on their ethnicity.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3644.
Length: 24 pages
Date of creation: Aug 2008
Date of revision:
Publication status: published in: International Journal of Manpower, 2009, 30 (1-2), 145-162
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Other versions of this item:
- Amelie F. Constant, 2009. "Businesswomen in Germany and their performance by ethnicity: It pays to be self-employed," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 145-162, May.
- Amelie Constant, 2008. "Businesswomen in Germany and Their Performance by Ethnicity: It Pays to Be Self-Employed," Discussion Papers of DIW Berlin 815, DIW Berlin, German Institute for Economic Research.
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-31 (All new papers)
- NEP-BEC-2008-08-31 (Business Economics)
- NEP-ENT-2008-08-31 (Entrepreneurship)
- NEP-LAB-2008-08-31 (Labour Economics)
- NEP-MIG-2008-08-31 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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