The Effect of Relative Standing on Considerations About Self-Employment

Stefan Schneck

Hannover Economic Papers (HEP) from Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät

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: 38 pages
Date: 2011-12
New Economics Papers: this item is included in nep-bec, nep-ent, nep-hrm, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-486.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:han:dpaper:dp-486

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