The Comparison of Incomes of Self-Employed and Salaried Workers Among German Nationals and Immigrants

42 Pages Posted: 28 Nov 2005

See all articles by Amelie F. Constant

Amelie F. Constant

Princeton University; UNU-MERIT; CESifo

Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics; The University of Pennsylvania - Department of Economics

Date Written: November 2005

Abstract

This paper attempts to compare the economic success of immigrants and natives in Germany. Employing data from German Socioeconomic Panel, the paper investigates the factors affecting self-employment as well as compares the income of self-employed and employed workers among four groups - West Germans, East Germans, guest workers and ethnic immigrants. Increasing age, higher education and self-employed parents increases probability of an individual's self-employment, with the last two applying only to West Germans. The self-employed earn more than their salaried counterparts, except for East Germans. Despite self-employed immigrants having the highest earnings of all groups, self-employment rates remain low among immigrants.

Keywords: Entrepreneurship, self-employment, Occupational Choice, immigrants, Wage Differentials

JEL Classification: J23, M13, J24, J61, J31

Suggested Citation

Constant, Amelie F. and Shachmurove, Yochanan, The Comparison of Incomes of Self-Employed and Salaried Workers Among German Nationals and Immigrants (November 2005). PIER Working Paper No. 05-030, Available at SSRN: https://ssrn.com/abstract=859145 or http://dx.doi.org/10.2139/ssrn.859145

Amelie F. Constant (Contact Author)

Princeton University ( email )

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Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics ( email )

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The University of Pennsylvania - Department of Economics ( email )

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