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Is Self-employment a Career Trap? A Large-Scale Field Experiment in the Labor Market

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  • Igor Asanov

    (University of Kassel, Germany)

  • Maria Mavlikeeva

    (University of Kassel, INCHER, Germany)

Abstract

We conduct a large-scale experiment in the labor market using more than 8,000 fictitious resumes to uncover the demand-side mechanisms behind the wage penalty for the self-employed. We find that self-employed individuals, compared to wage earners, are subject to adverse treatment across different occupations. This adverse treatment is concentrated in the lower-skilled, non-managerial market. This differential treatment, conditional on managerial skills, also holds for different occupational levels and increases with the length of self-employment experience. The results suggest that self-employment leads to the development of generalist skills (useful for managerial roles) at the cost of specialist skills.

Suggested Citation

  • Igor Asanov & Maria Mavlikeeva, 2025. "Is Self-employment a Career Trap? A Large-Scale Field Experiment in the Labor Market," MAGKS Papers on Economics 202513, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:202513
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