Businesswomen in Germany and Their Performance by Ethnicity: It Pays to Be Self-Employed
Institute for the Study of Labor (IZA); DIW DC
IZA Discussion Paper No. 3644
In this paper I assert that the entrepreneurial spirit can also exist in salaried jobs. I study the determinants of wages and the labor market success of two kinds of entrepreneurial women in Germany - self-employed and salaried businesswomen - and investigate whether ethnicity is important in these challenging jobs. Employing data from the German Socioeconomic Panel I estimate selection adjusted wage regressions for both types of businesswomen by country of origin. I find that self-employment offers businesswomen a lucrative avenue with higher monetary rewards, albeit for a shorter spell. If salaried businesswomen went into self-employment, they would receive considerably higher wages and for at least 30 years. However, if self-employed businesswomen went into salaried jobs, their wages would decline, suggesting that it is the self-employment sector that offers better opportunities and monetary success. Self-employed women in Germany fare well and most importantly, success does not depend on their ethnicity.
Number of Pages in PDF File: 24
Keywords: businesswomen, entrepreneurship, self-employment, economics of minorities, immigrants wage differentials
JEL Classification: M13, J23, J15, J61, J31working papers series
Date posted: August 18, 2008
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