Self-employed but looking : a labor market experiment

P.D. Koellinger, J. Mell, I. Pohl, C. Rössler, T. Treffers

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Empirical studies have shown that entrepreneurs earn, on average, less than the market wage for employees with otherwise similar characteristics. We examine whether having previously been self-employed is in itself a negative signal on the job market. In a field experiment where two applications of otherwise equally qualified individuals were sent for the same vacancies, we find that entrepreneurs systematically receive fewer responses than non-entrepreneurs. Thus, it appears that the earnings differential is partially explained by the fact that entrepreneurs do not have access to the reference jobs in practice. We discuss what type of unfavorable information self-employment may carry.
Original languageEnglish
Title of host publication4th IZA Workshop on Entrepreneurship Research, July 9-10, 2013
Place of PublicationSan Francisco, CA, USA
Publication statusPublished - 2013
Eventconference; 4th IZA Workshop on Entrepreneurship Research; 2013-07-09; 2013-07-10 -
Duration: 9 Jul 201310 Jul 2013


Conferenceconference; 4th IZA Workshop on Entrepreneurship Research; 2013-07-09; 2013-07-10
Other4th IZA Workshop on Entrepreneurship Research


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