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Can working conditions explain the return-to-entrepreneurship puzzle?
- Source :
- Journal for Labour Market Research. 48:271-286
- Publication Year :
- 2015
- Publisher :
- Springer Science and Business Media LLC, 2015.
-
Abstract
- Some influential studies show that many self-employed could apparently achieve higher earnings were they working in paid employment. One potential explanation for this 'return-to-entrepreneurship puzzle', not empirically tested yet, is that entrepreneurship entails non-monetary benefits, such as autonomy, flexibility, and task variety. Using German data and a decomposition analysis, I examine the contribution of these working conditions to the observed earnings differential between self-employment and paid employment. I confirm that self-employed individuals report lower earnings than what they are expected to earn in paid employment. However, differences in working conditions barely contribute to the earnings gap. This finding casts some doubt on the relevance of compensating differentials for explaining the return-to-entrepreneurship puzzle.
- Subjects :
- Organizational Behavior and Human Resource Management
Economics and Econometrics
Entrepreneurship
Labour economics
Einkommenseffekte
Tätigkeitsmerkmale
media_common.quotation_subject
J23
Unternehmereinkommen
jel:J81
Arbeitsbedingungen
Arbeitszufriedenheit
jel:J23
berufliche Autonomie
ddc:330
BIBB/BAuA-Erhebung
Economics
Relevance (law)
J31
media_common
Einkommenshöhe
erwerbstätige Männer
compensating differentials,Germany,returns to entrepreneurship,self-employment,working conditions
Earnings
Selbständige
Flexibility (personality)
Einkommensverzicht
Differential (mechanical device)
jel:J31
abhängig Beschäftigte
Human resource management
Arbeitszeitflexibilität
berufliche Selbständigkeit
Industrial relations
freie Berufe
Einkommensunterschied
J81
Autonomy
Self-employment
Subjects
Details
- ISSN :
- 18678343 and 16143485
- Volume :
- 48
- Database :
- OpenAIRE
- Journal :
- Journal for Labour Market Research
- Accession number :
- edsair.doi.dedup.....949325ce683965e2e1939bd0a19e84d3