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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionspapiere ; No. 86

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Wage Level and Structure; Wage Differentials ; Labor Standards: Working Conditions
• Subject: compensating differentials ; Germany ; returns to entrepreneurship ; self-employment ; working conditions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lechmann, Daniel S. J.
• Event: Veröffentlichung
• (who): Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik
• (where): Nürnberg
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/86158
• Last update: 10.03.2025, 11:44 AM CET