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Can working conditions explain the return-to-entrepreneurship puzzle?

  • Lechmann, Daniel S. J.
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    Most self-employed would apparently earn higher earnings if they were working in paid employment. One explanation for this 'return-to-entrepreneur-ship puzzle' could be that entrepreneurship entails substantial non-monetary bene-fits, such as autonomy, flexibility, and task variety. Utilizing German data and a de-composition analysis, this study examines the contribution of such working condi-tions to the observed earnings differential between self-employment and paid em-ployment. The results imply that working conditions differences do not contribute to resolve the return-to-entrepreneurship puzzle. Rather, (mis-)measurement of earnings seems to be an issue.

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    File URL: http://econstor.eu/bitstream/10419/86158/1/770665322.pdf
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    Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 86.

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    Date of creation: 2013
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    Handle: RePEc:zbw:faulre:86
    Contact details of provider: Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/

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    2. Fernández, Rosa M. & Nordman, Christophe J., 2009. "Are there pecuniary compensations for working conditions?," Labour Economics, Elsevier, vol. 16(2), pages 194-207, April.
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