Differences in the earnings distribution of self- and dependent emploxed German men - evidence from a quantile regression decomposition analysis
AbstractThis paper uses data from the German Socio-Economic Panel of the years 2000 to 2005 to study the earnings differential between self- and dependent employed German men. Constructing a counterfactual earnings distribution for the self-employed German dependant employment and using quantile regression decompositions we find that the earnings differential over the distribution cannot be explained by differences in endowments. Furthermore, low-earning self-employed could earn more in dependent employment. Finally, the observed earnings advantage for the self-employed at the top of the earnings distribution os not associated with higher returns to observable variables.
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Bibliographic InfoPaper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 55.
Length: 24 pages
Date of creation: Jul 2007
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self-employment; earnings differential; quantile regression decomposition; Machado/Mata decomposition;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
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