Differences in the earnings distribution of self- and dependent employed German men - evidence from a quantile regression decomposition analysis
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Chronological data
Date of first publication2007-08-20
Date of publication in PubData 2024-08-23
Language of the resource
English
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Abstract
This paper uses data from the German Socio-Economic Panel for the years 2000 to 2005 to study the earnings differential between self- and dependent employed German men. Constructing a counterfactual earnings distribution for the self-employed in dependent employment and using quantile regression decompositions we find that the earnings differential over the distribution cannot be explained by differences in endowments. Furthermore, low-earning self-employed could earn more in dependent employment. Finally, the observed earnings advantage for the self-employed at the top of the earnings distribution is not associated with higher returns to observable variables.
Keywords
Self-employment; Einkommensunterschied; Selbständigkeit
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Number of the series contribution
55