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Differences in the earnings distribution of self- and dependent employed German men - evidence from a quantile regression decomposition analysis

  • 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.

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Author:Nils Braakmann (Dr. rer. pol.)ORCiDGND
Document Type:ResearchPaper
Year of Completion:2007
Date of Publication (online):2007/08/20
Release Date:2007/08/20
Tag:Machado/Mata decomposition; earnings differential; quantile regression decomposition; self-employment
GND Keyword:Einkommensunterschied; Selbständigkeit; Deutschland
Institutes:Universität / Frühere Fachbereiche
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft