Differences in the earnings distribution of self- and dependent employed German men: evidence from a quantile regression decomposition analysis

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This paper uses data from the German Socio-Economic Panel for the years 2000 to 2005 to study the earnings differential between self- and dependent employed German men. Constructing a counterfactual earnings distribution for the self-employed in dependent employment and using quantile regression decompositions we find that the earnings differential over the distribution cannot be explained by differences in endowments. Furthermore, low-earning self-employed could earn more in dependent employment. Finally, the observed earnings advantage for the self-employed at the top of the earnings distribution is not associated with higher returns to observable variables.
Original languageEnglish
Place of PublicationLüneburg
PublisherInstitut für Volkswirtschaftslehre der Universität Lüneburg
Number of pages23
Publication statusPublished - 2007