The Comparison of Incomes of Self-Employed and Salaried Workers Among German Nationals and Immigrants
Institute for the Study of Labor (IZA); DIW DC
The City College of The City University of New York - Department of Economics; The University of Pennsylvania - Department of Economics
PIER Working Paper No. 05-030
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.
Number of Pages in PDF File: 42
Keywords: Entrepreneurship, self-employment, Occupational Choice, immigrants, Wage Differentials
JEL Classification: J23, M13, J24, J61, J31working papers series
Date posted: November 28, 2005
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