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Sind Selbständige zeit- und einkommensarm? Eine Mikroanalyse der Dynamik interdependenter multidimensionaler Armut mit dem Sozio-ökonomischen Panel und den deutschen Zeitbudgeterhebungen

Author

Listed:
  • Joachim Merz
  • Tim Rathjen

    () (LEUPHANA University Lüneburg,Department of Economic, Behaviour and Law Sciences, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)))

Abstract

It is common sense that the self-employed – as professions and entrepreneurs – are rich by money and, because of their independence and time sovereignty, are rich by time, too. However, time stress and the variety of small businesses sometimes tell another story. This study tries to shed empirically based light on the issue and its dynamics by asking not only about income poverty but also about time poverty within the framework of a new interdependent multidimensional poverty approach. Database is the German Socio-Economic Panel (GSOEP) for the evaluation of the substitution/trade-off of genuine leisure time and income as well as the German Time Use Surveys (GTUS) 1991/92 and 2001/02 for the actual poverty analyses. Main result: The self-employed are more often affected by single income poverty, single time poverty as well as interdependent multidimensional time and income poverty than all other poor employees (“working poor”) for both periods of observation. A remarkable percentage of not income poor but time poor employees in general, and the self-employed in particular, is not able to compensate their time deficit by income. Neglecting the self-employed in the poverty and well-being discussion would disregard an important group of the “working poor”.

Suggested Citation

  • Joachim Merz & Tim Rathjen, 2010. "Sind Selbständige zeit- und einkommensarm? Eine Mikroanalyse der Dynamik interdependenter multidimensionaler Armut mit dem Sozio-ökonomischen Panel und den deutschen Zeitbudgeterhebungen," FFB-Discussionpaper 82, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  • Handle: RePEc:leu:wpaper:82
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    References listed on IDEAS

    as
    1. Joachim Merz & Paul Böhm & Derik Burgert, 2009. "Timing and fragmentation of daily working hours arrangements and income inequality – An earnings treatment effects approach with German time use diary data," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 6(2), pages 200-239, September.
    2. Guy Mayraz & Jürgen Schupp & Gert G. Wagner, 2009. "Life Satisfaction and Relative Income: Perceptions and Evidence," CEP Discussion Papers dp0938, Centre for Economic Performance, LSE.
    3. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, pages 402-435.
    4. Bruno Frey & Alois Stutzer, 2005. "Happiness Research: State and Prospects," Review of Social Economy, Taylor & Francis Journals, pages 207-228.
    5. Joachim Merz & Tim Rathjen, 2014. "Time And Income Poverty: An Interdependent Multidimensional Poverty Approach With German Time Use Diary Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(3), pages 450-479, September.
    6. Joachim Merz & Tim Rathjen, 2010. "Sind Selbständige zeit- und einkommensarm? Eine Mikroanalyse der Dynamik interdependenter multidimensionaler Armut mit dem Sozio-ökonomischen Panel und den deutschen Zeitbudgeterhebungen," FFB-Discussionpaper 82, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    7. Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, pages 3-24.
    8. Andrew Harvey & Arun Mukhopadhyay, 2007. "When Twenty-Four Hours is not Enough: Time Poverty of Working Parents," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, pages 57-77.
    9. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 69-93.
    10. Ari Hyytinen & Olli-Pekka Ruuskanen, 2007. "Time Use of the Self-Employed," Kyklos, Wiley Blackwell, vol. 60(1), pages 105-122, February.
    11. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 25-49.
    12. Joachim Merz & Tim Rathjen, 2011. "Zeit- und Einkommensarmut von Selbständigen als Freiberufler und Unternehmer: ein Beitrag zu interdependenter multidimensionaler Armut und zu den "working poor"," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 80(4), pages 51-76.
    13. Joachim Merz & Tim Rathjen, 2014. "Multidimensional time and income poverty: well-being gap and minimum 2DGAP poverty intensity – German evidence," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 555-580.
    14. Joseph Deutsch & Jacques Silber, 2005. "Measuring Multidimensional Poverty: An Empirical Comparison Of Various Approaches," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 145-174, March.
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    17. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
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    21. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 25-49.
    22. Merz, Joachim & Kirsten, Dagmar, 1998. "Extended Income Inequality and Poverty Dynamics of Labour Market and Household Activities A Ten Years Microanalysis with the German Socio-Economic Panel," MPRA Paper 7012, University Library of Munich, Germany.
    23. Thursby, Jerry G & Lovell, C A Knox, 1978. "An Investigation of the Kmenta Approximation to the CES Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 363-377, June.
    24. Hauser, Richard, 2007. "Armut in Deutschland: Versagt der Sozialstaat?," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW – German National Library of Economics / Leibniz Information Centre for Economics, pages 172-181.
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    Cited by:

    1. Merz, Joachim & Loest, Olaf & Simon, André, 1999. "Existenzgründung Wie werde ich selbständig, wie werde ich Freiberufler? Ein Leitfaden," MPRA Paper 6361, University Library of Munich, Germany.
    2. Merz, Joachim, 1996. "Schattenwirtschaft und Arbeitsplatzschaffung," MPRA Paper 7224, University Library of Munich, Germany.
    3. Joachim Merz & Lars Rusch, 2015. "MICSIM-4j - A General Microsimulation Model User Guide (Version 1.1)," FFB-Discussionpaper 100, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    4. Merz, Joachim, 2000. "The Distribution of Income of Self-employed, Entrepreneurs and Professions as Revealed from Micro Income Tax Statistics in Germany," MPRA Paper 6357, University Library of Munich, Germany.
    5. Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence," FFB-Discussionpaper 92, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    6. Mirko Felchner, 2015. "Einkommensdynamik bei Selbständigen als Freie Berufe und abhängig Beschäftigte Eine dynamische Paneldatenschätzung mit Daten des Sozio-oekonomischen Panels," FFB-Discussionpaper 101, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    7. Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence," FFB-Discussionpaper 92, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    8. Tim Rathjen, 2011. "Do Time Poor Individuals Pay More?," FFB-Discussionpaper 91, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    9. Joachim Merz & Tim Rathjen, 2016. "Entrepreneurs and Freelancers: Are They Time and Income Multidimensional Poor? - The German Case," FFB-Discussionpaper 102, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    10. Merz, Joachim & Quiel, Thorsten & Venkatarama, Kshama, 1998. "Wer bezahlt die Steuern? Steuerbelastung und Einkommenssituation von Freien und anderen Berufen," MPRA Paper 9173, University Library of Munich, Germany.

    More about this item

    Keywords

    Self-employed; liberal professions (Freie Berufe); entrepreneurs; interdependent multidimensional time and income poverty; time and income substitution; extended economic well-being; satisfaction/happiness; CES welfare function estimation; working poor; German Socio-Economic Panel; German Time Use Surveys 1991/92 and 2001/02;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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