Arbeitspapier
Earnings Premiums and Penalties for Self-Employment and Informal Employees around the World
This paper examines the earnings premiums associated with different types of employment in 73 countries. Workers are divided into four categories: Non-professional own-account workers, employers and own-account professionals, informal wage employees, and formal wage employees. Approximately half of the workers in low income countries are nonprofessional own-account workers and the majority of the rest are informal employees. Fewer than 10% are formal employees, and only 2% of workers in low income countries are employers or own-account professionals. As per capita GDP increases, there are large net shifts from non-professional own account work into formal wage employment. Across all regions and income levels, non-professional own-account workers and informal wage employees face an earnings penalty compared to formal wage employees. But in low income countries, this earnings penalty is small, and non-professional own-account workers earn a positive premium relative to all wage employees. Earnings penalties for non-professional own account workers tend to increase with GDP and are largest for female workers in high income countries. Men earn greater premiums than women for being employers or own-account professionals. These results are consistent with compensating wage differentials and firm quasi-rents playing important roles in explaining cross-country variation in earnings penalties, and raise questions about the extent to which the unskilled self-employed are rationed out of formal wage work in low-income countries.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 9723
- Klassifikation
-
Wirtschaft
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Wage Level and Structure; Wage Differentials
Informal Labor Markets
- Thema
-
self-employment
informal sector
earnings differentials
development
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gindling, T. H.
Mossaad, Nadwa
Newhouse, David
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gindling, T. H.
- Mossaad, Nadwa
- Newhouse, David
- Institute for the Study of Labor (IZA)
Entstanden
- 2016
Ähnliche Objekte (12)
Life Cycle Earnings, Education Premiums and Internal Rates of Return
Penalties
Problem on the Plains: College Earnings Premiums in Small Metropolitan Areas
How Large are Earnings Penalties for Self-Employed and Informal Wage Workers?
How Large are Earnings Penalties for Self-Employed and Informal Wage Workers?
Premiums and Penalties for Over- and Undereducation Cross-Time and Cross-National Comparisons in the United States and Germany
Premiums and Penalties for Over- and Undereducation Cross-Time and Cross-National Comparisons in the United States and Germany
Self-Employment and the Earnings of Male Immigrants in the U.S
The impact on earnings when entering self-employment: Evidence for Germany
The impact on earnings when entering self-employment : Evidence for Germany
Trends in the Returns to Social Assimilation: Earnings Premiums among U.S. Immigrants that Marry Natives
Have Changing Liability Rules Compensated Workers Twice for Occupational Hazards?: Earnings Premiums and Cancer Risks
Life Cycle Earnings, Education Premiums and Internal Rates of Return
Penalties
Problem on the Plains: College Earnings Premiums in Small Metropolitan Areas
How Large are Earnings Penalties for Self-Employed and Informal Wage Workers?
How Large are Earnings Penalties for Self-Employed and Informal Wage Workers?
Premiums and Penalties for Over- and Undereducation Cross-Time and Cross-National Comparisons in the United States and Germany
Premiums and Penalties for Over- and Undereducation Cross-Time and Cross-National Comparisons in the United States and Germany
Self-Employment and the Earnings of Male Immigrants in the U.S
The impact on earnings when entering self-employment: Evidence for Germany
The impact on earnings when entering self-employment : Evidence for Germany
Trends in the Returns to Social Assimilation: Earnings Premiums among U.S. Immigrants that Marry Natives
Have Changing Liability Rules Compensated Workers Twice for Occupational Hazards?: Earnings Premiums and Cancer Risks
Life Cycle Earnings, Education Premiums and Internal Rates of Return
Penalties
Problem on the Plains: College Earnings Premiums in Small Metropolitan Areas
How Large are Earnings Penalties for Self-Employed and Informal Wage Workers?
How Large are Earnings Penalties for Self-Employed and Informal Wage Workers?
Premiums and Penalties for Over- and Undereducation Cross-Time and Cross-National Comparisons in the United States and Germany
Premiums and Penalties for Over- and Undereducation Cross-Time and Cross-National Comparisons in the United States and Germany
Self-Employment and the Earnings of Male Immigrants in the U.S
The impact on earnings when entering self-employment: Evidence for Germany
The impact on earnings when entering self-employment : Evidence for Germany
Trends in the Returns to Social Assimilation: Earnings Premiums among U.S. Immigrants that Marry Natives