The Impact on Earnings When Entering Self-Employment: Evidence for Germany
Using data of the German Socio-Economic Panel (GSOEP) earnings differentials between self-employed and wage-employed workers in the German labor market are explored. Previous research based on US data reports lower incomes for entrepreneurs. In contrast to that, the findings of this contribution suggest the opposite for German entrepreneurs. They have considerably higher earnings than wage-employed workers. Furthermore, there is a significant and positive effect on earnings when entering self-employment. This holds true when it is also taken into account that workers usually report a smaller firm size and work longer after beginning an entrepreneurial occupation.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.diw.de/en/soep
More information through EDIRC
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.:
- Marco Caliendo & Frank Fossen & Alexander Kritikos, 2014.
"Personality characteristics and the decisions to become and stay self-employed,"
Small Business Economics,
Springer, vol. 42(4), pages 787-814, April.
- Caliendo, Marco & Fossen, Frank M. & Kritikos, Alexander S., 2011. "Personality Characteristics and the Decision to Become and Stay Self-Employed," IZA Discussion Papers 5566, Institute for the Study of Labor (IZA).
- Caliendo, Marco & Fossen, Frank M. & Kritikos, Alexander S., 2011. "Personality characteristics and the decision to become and stay self-employed," Discussion Papers 2011/9, Free University Berlin, School of Business & Economics.
- Marco Caliendo & Frank M. Fossen & Alexander S. Kritikos, 2011. "Personality Characteristics and the Decision to Become and Stay Self-Employed," SOEPpapers on Multidisciplinary Panel Data Research 369, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Marco Caliendo & Frank M. Fossen & Alexander S. Kritikos, 2011. "Personality Characteristics and the Decision to Become and Stay Self-Employed," Discussion Papers of DIW Berlin 1113, DIW Berlin, German Institute for Economic Research.
- Philipp Köllinger & Maria Minniti & Christian Schade, 2005.
""I Think I Can, I Think I Can": Overconfidence and Entrepreneurial Behavior,"
Discussion Papers of DIW Berlin
501, DIW Berlin, German Institute for Economic Research.
- Koellinger, Philipp & Minniti, Maria & Schade, Christian, 2007. ""I think I can, I think I can": Overconfidence and entrepreneurial behavior," Journal of Economic Psychology, Elsevier, vol. 28(4), pages 502-527, August.
- Edvard Johansson, 2000. "Self-employment and the predicted earnings differential - evidence from Finland," Finnish Economic Papers, Finnish Economic Association, vol. 13(1), pages 45-55, Spring.
- Shane T. Jensen & Stephen H. Shore, 2008. "Changes in the Distribution of Income Volatility," Papers 0808.1090, arXiv.org.
- Williams, Donald R., 2002. "Returns to education and experience in self-employment: Evidence from Germany," IRISS Working Paper Series 2002-04, IRISS at CEPS/INSTEAD.
- Mats Hammarstedt, 2009. "Predicted earnings and the propensity for self-employment: Evidence from Sweden," International Journal of Manpower, Emerald Group Publishing, vol. 30(4), pages 349-359, July.
- Roy Thurik & Isabel Grilo, 2006.
"Latent and actual entrepreneurship in Europe and the US: some recent developments,"
Scales Research Reports
N200514, EIM Business and Policy Research.
- Roy Thurik & Isabel Grilo, 2005. "Latent and actual entrepreneurship in Europe and the US: some recent developments," Papers on Entrepreneurship, Growth and Public Policy 2005-24, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Lazear, Edward P & Moore, Robert L, 1984. "Incentives, Productivity, and Labor Contracts," The Quarterly Journal of Economics, MIT Press, vol. 99(2), pages 275-96, May.
- Daiji Kawaguchi, 2002. "Compensating Wage Differentials among Self-Employed Workers:Evidence from Job Satisfaction Scores," ISER Discussion Paper 0568, Institute of Social and Economic Research, Osaka University.
- Yannis Georgellis & Howard Wall, 2005.
"Gender differences in self-employment,"
International Review of Applied Economics,
Taylor & Francis Journals, vol. 19(3), pages 321-342.
- Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
- Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
- Heiko Bergmann & Rolf Sternberg, 2007. "The Changing Face of Entrepreneurship in Germany," Small Business Economics, Springer, vol. 28(2), pages 205-221, March.
- Joern H. Block & Marcus Wagner, 2010.
"Necessity and Opportunity Entrepreneurs in Germany: Characteristics and Earning s Differentials,"
Schmalenbach Business Review (sbr),
LMU Munich School of Management, vol. 62(2), pages 154-174, April.
- Block, Joern & Wagner, Marcus, 2006. "Necessity and Opportunity Entrepreneurs in Germany: Characteristics and Earnings Differentials," MPRA Paper 610, University Library of Munich, Germany.
- Jörn Block & Philipp Sandner & Marcus Wagner & Marc Weiglein, 2009. "Unternehmensgründungen von Ausländern in Deutschland: Einkommenseffekte und Implikationen für die Gründungslehre," SOEPpapers on Multidisciplinary Panel Data Research 196, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Jensen & Shore, 2008. "Changes in the Distribution of Income Volatility," 2008 Meeting Papers 82, Society for Economic Dynamics.
- repec:cup:cbooks:9780521828130 is not listed on IDEAS
- Bruno S. Frey & Matthias Benz, 2003.
"Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy,"
CESifo Working Paper Series
959, CESifo Group Munich.
- Matthias Benz & Bruno S. Frey, 2008. "Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy," Economica, London School of Economics and Political Science, vol. 75(298), pages 362-383, 05.
- Bruno S. Frey & Matthias Benz, . "Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy," IEW - Working Papers 135, Institute for Empirical Research in Economics - University of Zurich.
When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp537. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek)
If references are entirely missing, you can add them using this form.