What Explains the Gender Earnings Gap in Self-Employment? A Decomposition Analysis with German Data
AbstractUsing a large data set for Germany, we show that both the raw and the unexplained gender earnings gap are higher in self-employment than in paid employment. Applying an Oaxaca-Blinder decomposition, more than a quarter of the difference in monthly self-employment earnings can be traced back to women working fewer hours than men. In contrast variables like family background, working time flexibility and career aspirations do not seem to contribute much to the gender earnings gap, suggesting that self-employed women do not earn less because they are seeking work-family balance rather than profits. Differences in human capital endowments account for another 13 percent of the gap but segregation does not contribute to the gender earnings gap in a robust way.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6435.
Length: 32 pages
Date of creation: Mar 2012
Date of revision:
Publication status: published as 'Why is there a gender earnings gap in self-employment? A decomposition analysis with German data' in: IZA Journal of European Labor Studies, 2012, 1 (6), [Open Access]
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Other versions of this item:
- Lechmann, Daniel S. J. & Schnabel, Claus, 2012. "What explains the gender earnings gap in self-employment? A decomposition analysis with German data," Discussion Papers 77, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-03 (All new papers)
- NEP-ENT-2012-04-03 (Entrepreneurship)
- NEP-EUR-2012-04-03 (Microeconomic European Issues)
- NEP-LAB-2012-04-03 (Labour Economics)
- NEP-LMA-2012-04-03 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2012-04-03 (Unemployment, Inequality & Poverty)
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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