Do Entrepreneurs Really Earn Less?

Alina Sorgner, Michael Fritsch and Alexander Kritikos

VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association

Abstract: We compare, based on German data, the income of self-employed individuals with and without employees with the income of dependently employed individuals. Our results show that self-employed with employees tend to earn significantly higher incomes than their salaried counterparts, while with the exception of solo-entrepreneurs without vocational degree - the income of solo self-employed tends to be significantly lower than that of comparable employees. We also observe that self-employed people are able to improve their earnings within the first three years after start-up, when we compare their actual earnings to their income before the start-up.

JEL-codes: D22 D31 L26 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-ent and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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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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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc14:100449

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