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- W2555466225 abstract "In this paper, I re-examine the earnings differential between self-employed and wage- employed men. Previous analysts have consistently concluded that self-employment does not pay, but this result is puzzling because self-employed men work longer hours and bear more income risk than their wage-employed counterparts. Using data from the 1979 National Longitudinal Survey of Youth, I find that the timing and (voluntary or involuntary) nature of men's transitions into self-employment are important determinants of whether they receive wage gains. I find that when a man transitions from wage-employment to self-employment voluntarily and early in his career, his wage is predicted to increase contemporaneously by 31%. The magnitude of this increase is 2.6 times larger than the predicted wage change associated with a voluntary, early career transition to a new wage job. Conversely, I find that when a man transitions from wage- employment to self-employment involuntarily and late in his career, his predicted wage decreases contemporaneously by 18%. The magnitude of this decrease is larger than the predicted 13% wage decrease associated with an involuntary, late career transition to a new wage job." @default.
- W2555466225 created "2016-11-30" @default.
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- W2555466225 date "2015-01-01" @default.
- W2555466225 modified "2023-09-24" @default.
- W2555466225 title "Does Self-Employment Pay? The Role of Timing and Voluntary Mobility" @default.
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