Do Entrepreneurs Really Earn Less?

Alina Sorgner, Michael Fritsch () and Alexander Kritikos

No 8651, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Based on representative micro data for Germany, we compare the incomes of self-employed with those of wage workers. Our results show that the median self-employed entrepreneur with employees earns significantly more than the median salaried employee, while the median solo entrepreneur earns less. However, solo entrepreneurship pays for those with a university entrance degree but no further professional qualification as well as for those who were in the upper percentiles of the income distribution in their previous salaried job. Surprisingly, the variation in hourly incomes of solo entrepreneurs is higher than that of entrepreneurs with employees.

Keywords: income; entrepreneurship; self-employment; start-ups; Germany (search for similar items in EconPapers)
JEL-codes: D22 L26 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2014-11
New Economics Papers: this item is included in nep-ent, nep-lab, nep-pbe and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published - revised version published in: Small Business Economics, 2017, 49 (2), 251–272

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Related works:
Journal Article: Do entrepreneurs really earn less? (2017)
Working Paper: Do Entrepreneurs Really Earn Less? (2014)
Working Paper: Do entrepreneurs really earn less? (2014)
Working Paper: Do Entrepreneurs Really Earn Less? (2014)
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