The Effect of Relative Standing on Considerations about Self-Employment

Stefan Schneck

No 426, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: This paper uses unique German data to examine the effects of the relative standing on the individual propensity to become self-employed in the next two years. The results suggest that the relationship between relative wage positions and propensity to become self-employed is U-shaped. This is interpreted as evidence that low status translates into entrepreneurial motivation for workers in low relative wage positions. Employees with high relative standing, in turn, seem to be more concerned about the lack of future career prospects in paid employment and consider self-employment as a next step on the individual career ladder.

Keywords: Relative wage position; status; self-employment (search for similar items in EconPapers)
JEL-codes: L26 L29 (search for similar items in EconPapers)
Pages: 37 p.
Date: 2011
New Economics Papers: this item is included in nep-bec, nep-ent, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://www.diw.de/documents/publikationen/73/diw_01.c.391496.de/diw_sp0426.pdf (application/pdf)

Related works:
Working Paper: The Effect of Relative Standing on Considerations About Self-Employment (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp426

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