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Journal Article

Do Entrepreneurs Really Earn Less?

Small Business Economics

Authors

  • Sorgner
  • A.
  • Fritsch
  • M.
  • Kritikos
  • A.

Publication Date

DOI

10.1007/s11187-017-9874-6

JEL Classification

D22 D31 J24 J31 L26

Key Words

entrepreneurship

income

self-employment

Related Topics

Labor Market

Equal Opportunities

Germany

Based on large representative German household survey data, we compare incomes of the self-employed with those of paid employees. We find that the entrepreneurial income gap is largest for those holding a tertiary degree, but in two directions: positive for employers (self-employed with further employees) and negative for solo entrepreneurs. Entrepreneurs holding a tertiary degree also face the greatest income variation. However, some solo self-employed earn more than their employed counterparts, in particular those with a university entrance degree as the highest level of education.

Kiel Institute Expert

  • Prof. Dr. Alina Sorgner
    Kiel Institute Researcher

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