What explains the gender earnings gap in self-employment? A decomposition analysis with German data

Arbeitspapier

Using a large data set for Germany, we show that both the raw and the unexplained gender earnings gap are higher in self-employment than in paid employment. Applying an Oaxaca-Blinder decomposition, more than a quarter of the difference in monthly self-employment earnings can be traced back to women working fewer hours than men. In contrast variables like family background, working time flexibility and career aspirations do not seem to contribute much to the gender earnings gap, suggesting that self-employed women do not earn less because they are seeking work-family balance rather than profits. Differences in human capital endowments account for another 13 percent of the gap but segregation does not contribute to the gender earnings gap in a robust way.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionspapiere ; No. 77

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Labor Discrimination
• Subject: earnings differential ; entrepreneurship ; gender pay gap ; Germany ; self-employed ; self-employment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lechmann, Daniel S. J. ; Schnabel, Claus
• Event: Veröffentlichung
• (who): Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik
• (where): Nürnberg
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/57844
• Last update: 10.03.2025, 11:43 AM CET