Returns to Education and Experience in Self-Employment: Evidence from Germany
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Returns to Education and Experience in Self-Employment: Evidence from Germany
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 1 : pp. 139–150
3 Citations (CrossRef)
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Williams, Donald R.
Cited By
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Saved by the bell? The effects of compulsory schooling laws on self-employment and earnings in Australia
Patel, Pankaj C.
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The effect of education on household incomes using the Mincerian approach: a comparison between MENA and the rest of the world
Tzannatos, Zafiris | Diwan, Ishac | Ahad, Joanna AbdelEducation Economics, Vol. (2024), Iss. P.1
https://doi.org/10.1080/09645292.2024.2342391 [Citations: 0] -
The Impact on Earnings When Entering Self-Employment – Evidence for Germany
Martin, Johannes
SSRN Electronic Journal, Vol. (2013), Iss.
https://doi.org/10.2139/ssrn.2214877 [Citations: 3]
Abstract
This paper compares the returns to human capital in the self-employed and wage-employed sectors of the economy. Using data from the former West German sample of the German Socioeconomic Panel survey for the 1984 – 1997 time period, we estimate returns to education and work experience from standard log-earnings equations for selfemployed and wage-employed workers. Two key results are found. First, additional schooling has a smaller effect on earnings for the self-employed than for the wage-employed. Indeed, educational attainment has an insignificant effect on self-employment earnings. Second, prior self-employment experience receives a lower return in wageemployment than does prior wage-employment experience. These results are consistent across specifications controlling for education endogeneity and self-selection bias.