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Title:What explains the gender earnings gap in self-employment? A decomposition analysis with German data PDF Logo
Authors:Lechmann, Daniel S. J.
Schnabel, Claus
Issue Date:2012
Series/Report no.:Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6435
Abstract:Using a large data set for Germany, we show that both the raw and the unexplained gender earnings gap are higher in self-employment than in paid employment. Applying an Oaxaca-Blinder decomposition, more than a quarter of the difference in monthly self-employment earnings can be traced back to women working fewer hours than men. In contrast variables like family background, working time flexibility and career aspirations do not seem to contribute much to the gender earnings gap, suggesting that self-employed women do not earn less because they are seeking work-family balance rather than profits. Differences in human capital endowments account for another 13 percent of the gap but segregation does not contribute to the gender earnings gap in a robust way.
Subjects:earnings differential
entrepreneurship
gender pay gap
Germany
self-employed
self-employment
JEL:J31
J71
Persistent Identifier of the first edition:urn:nbn:de:101:1-201207125689
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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