The Comparison of Incomes of Self-Employed and Salaried Workers Among German Nationals and Immigrants
42 Pages Posted: 28 Nov 2005
Date Written: November 2005
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: Suggested Citation