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

Lechmann D, Schnabel C (2012)

Publication Type: Journal article

Publication year: 2012

Journal

IZA Journal of European Labor Studies SpringerOpen

Publisher: SpringerOpen

Book Volume: 1

Journal Issue: 6

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.

Authors with CRIS profile

Daniel Lechmann Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik Claus Schnabel Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik

Related research project(s)

Löhne und Lohndifferenziale Jan. 1, 2000 - Jan. 1, 2003

How to cite

APA:

Lechmann, D., & Schnabel, C. (2012). Why is there a gender earnings gap in self-employment? A decomposition analysis with German data. IZA Journal of European Labor Studies, 1(6).

MLA:

Lechmann, Daniel, and Claus Schnabel. "Why is there a gender earnings gap in self-employment? A decomposition analysis with German data." IZA Journal of European Labor Studies 1.6 (2012).

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