The comparison of incomes of self-employed and salaried workers among German Nationals and immigrants

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The comparison of incomes of self-employed and salaried workers among German Nationals and immigrants

Author Info

Amelie Constant () (The Institute for the Study of Labor (IZA), Bonn)
Yochanan Shachmurove () (Departments of Economics, City College of The City University of New York and University of Pennsylvania)

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Abstract

This paper attempts to compare the economic success of immigrants and natives in Germany. Employing data from German Socioeconomic Panel, the paper investigates the factors affecting self-employment as well as compares the income of self-employed and employed workers among four groups – West Germans, East Germans, guest workers and ethnic immigrants. Increasing age, higher education and self-employed parents increases probability of an individual’s self-employment, with the last two applying only to West Germans. The self-employed earn more than their salaried counterparts, except for East Germans. Despite self-employed immigrants having the highest earnings of all groups, self-employment rates remain low among immigrants.

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Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 05-030.

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Length: 42 pages
Date of creation: 01 Nov 2005
Date of revision:
Handle: RePEc:pen:papers:05-030

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - 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-2005-12-09 (All new papers)
NEP-EEC-2005-12-09 (European Economics)
NEP-ENT-2005-12-09 (Entrepreneurship)
NEP-LAB-2005-12-09 (Labour Economics)

References listed on IDEAS
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David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Constant, Amelie & Zimmermann, Klaus F., 2004. "The Making of Entrepreneurs in Germany: Are Native Men and Immigrants Alike?," IZA Discussion Papers 1440, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- Amelie Constant & Klaus Zimmermann, 2006. "The Making of Entrepreneurs in Germany: Are Native Men and Immigrants Alike?," Small Business Economics, Springer, vol. 26(3), pages 279-300, 04. [Downloadable!] (restricted)
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Other versions:
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Lofstrom, Magnus, 1999. "Labor Market Assimilation and the Self-Employment Decision of Immigrant Entrepreneurs," IZA Discussion Papers 54, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
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Lecker, Tikva & Shachmurove, Yochanan, 1999. "Immigration and Socioeconomic Gaps: Theory and Applications," Applied Economics, Taylor and Francis Journals, vol. 31(5), pages 539-49, May. [Downloadable!] (restricted)
repec:fth:prinin:390 is not listed on IDEAS
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Other versions:
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Other versions:
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