Self-Employment by Foreigners in Germany: Income Effects and Implications for Entrepeneurship Support Policies

Block, Jorn H.; Sandner, Philipp G.; Wagner, Marcus

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Self-Employment by Foreigners in Germany: Income Effects and Implications for Entrepeneurship Support Policies

Soziale Welt - Zeitschrift für sozialwissenschaftliche Forschung, Vol. 62, No. 1, pp. 7-23

21 Pages Posted: 20 Oct 2008 Last revised: 17 Nov 2011

See all articles by Jorn H. Block

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Philipp G. Sandner

Frankfurt School of Finance & Management

Marcus Wagner

Julius-Maximilians-University of Wuerzburg; BETA

Date Written: October 17, 2008

Abstract

The paper uses data from the German Socio-Economic Panel (SOEP) to analyze entrepreneurial activities by foreigners in Germany. The results from our regression analysis are the following: First, foreigners in self-employment are found to earn more than foreigners in a regular employment position. Second, foreigners seem to gain more from self-employment compared to German entrepreneurs. Also, the earnings increase from self-employment is larger for foreigners than it is for Germans. The findings are discussed from a policy and an entrepreneurship education perspective.

Note: Downloadable document is in German.

Keywords: Entrepreneurship, earnings, foreigners, income effects

JEL Classification: M13, J10, J30

Suggested Citation: Suggested Citation

Block, Jorn Hendrich and Sandner, Philipp and Wagner, Marcus, Self-Employment by Foreigners in Germany: Income Effects and Implications for Entrepeneurship Support Policies (October 17, 2008). Soziale Welt - Zeitschrift für sozialwissenschaftliche Forschung, Vol. 62, No. 1, pp. 7-23, Available at SSRN: https://ssrn.com/abstract=1286084