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Why is there a gender earnings gap in self-employment? A decomposition analysis with German data

Why is there a gender earnings gap in self-employment? A decomposition analysis with German data 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, about one quarter to one third of the difference in monthly self-employment earnings can be traced back to women working fewer hours than men whereas there are no robust segregation effects. Working time flexibility and career aspirations do not seem to contribute much to the gender earnings gap, whereas family background plays a certain role as it affects the earnings of self-employed men and women quite differently. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png IZA Journal of European Labor Studies Springer Journals

Why is there a gender earnings gap in self-employment? A decomposition analysis with German data

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Publisher
Springer Journals
Copyright
Copyright © 2012 by Lechmann and Schnabel; licensee Springer.
Subject
Economics / Management Science; Labor Economics; Population Economics
eISSN
2193-9012
DOI
10.1186/2193-9012-1-6
Publisher site
See Article on Publisher Site

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, about one quarter to one third of the difference in monthly self-employment earnings can be traced back to women working fewer hours than men whereas there are no robust segregation effects. Working time flexibility and career aspirations do not seem to contribute much to the gender earnings gap, whereas family background plays a certain role as it affects the earnings of self-employed men and women quite differently.

Journal

IZA Journal of European Labor StudiesSpringer Journals

Published: Dec 28, 2012

References