Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191626
Authors: 
Schneck, Stefan
Year of Publication: 
2018
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research 999
Abstract: 
It is well known that the self-employed are over-represented at the bottom as well as the top of the income distribution. This paper shifts the focus from the income situation of the self-employed to the distributive effects of a change in self-employment rates. With representative German data and unconditional quantile regression analysis we show that an increase in the proportion of self-employed individuals in the labor force increases income polarization by tearing down floors at the bottom and allowing higher earnings potentials at the very top of the hourly income distribution. Recentered influence function regression of inequality measures corroborate that self-employment is a source of income inequality in the labor market.
Subjects: 
income
earnings inequality
self-employment
JEL: 
L26
D31
Document Type: 
Working Paper

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