Year: 2003
Author: Williams, Donald R.
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 1 : pp. 139–150
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.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.123.1.139
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 1 : pp. 139–150
Published online: 2003-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 12