Self-Employed Individuals, Time Use, and Earnings
This paper analyzes the time allocation of self-employed individuals and the impact of housework activities on earnings of self-employed individuals. In contrast to men and women in paid employment time allocation of self-employed individuals was more gendered with men performing more market work. Also differences in daily routine of activities occurred. While descriptive statistics and pooled OLS earnings regressions indicated a negative correlation between time spent on housework activities and earnings, fixed effects earnings regressions only showed a significantly negative impact on monthly earnings of self-employed men. This impact disappeared after controlling for potential endogeneity via instrumental variable estimators.
KeywordsSelf-employment Time use Earnings Gender earnings gap Germany
JEL ClassificationJ16 J31 J22
I would like to thank Claus Schnabel, two anonymous referees, and the editor of this journal for very helpful suggestions. I also appreciate the comments received from participants of a Ph.D. seminar at Nuremberg.
- Aronson, R. L. (1991). Self-employment. A labor market perspective. Ithaca, NY: ILR Press.Google Scholar
- Baltagi, B. H. (2013). Econometric analysis of panel data. Chichester: Wiley.Google Scholar
- Burda, M. C., Hamermesh, D. S., & Weil, P. (2008). The distribution of total work in the EU and USA. In T. Boeri, M. C. Burda, & F. Kramarz (Eds.), Working hours and job sharing in the EU and USA: Are Europeans lazy? Or Americans crazy? (pp. 13–91). Oxford: Oxford University Press.CrossRefGoogle Scholar
- Coleman, S. (2000). Access to capital and terms of credit: A comparison of men- and women-owned small businesses. Journal of Small Business Management, 38(3), 37–52. Retrieved from http://search.proquest.com/docview/220957222?accountid=10755. Accessed 15 Apr 2014.
- Devine, T. J. (1994). Characteristics of self-employed women in the United States. Monthly Labor Review, 117(3), 20–34.Google Scholar
- Ehling, M., Holz, E., & Kahle, I. (2001). Erhebungsdesign der Zeitbudgeterhebung 2001/2002. Wirtschaft und Statistik, 2001(6), 427–436.Google Scholar
- Federal Statistical Office. (2005). Technical Quality Report: The 2001/2002 Time Budget Survey. Wiesbaden: Federal Statistical Office.Google Scholar
- Gather, C., Schmidt, T., & Ulbricht, S. (2010). Der Gender Income Gap bei den Selbstständigen—Empirische Befunde. In A. D. Bührmann & H. J. Pongratz (Eds.), Prekäres Unternehmertum. Unsicherheiten von selbstständiger Erwerbstätigkeit und Unternehmensgründung (pp. 85–110). Wiesbaden: VS Verlag für Sozialwissenschaften. doi: 10.1007/978-3-531-92513-4_4.Google Scholar
- Gronau, R. (1988). Sex-related wage differentials and women’s interrupted labor careers–the chicken or the egg. Journal of Labor Economics, 6, 277–301. http://www.jstor.org/stable/2534826. Accessed 19 Nov 2013.
- Gurley-Calvez, T., Harper, K., & Biehl, A. (2009). Self-employed women and time use. Small Business Administration—Office of Advocacy, Retrieved from http://www.sba.gov/advocacy/7540/12264. Accessed 25 Nov 2013.
- Haber, S. E., Lamas, E. J., & Lichtenstein, J. H. (1987). On their own: The self-employed and others in private business. Monthly Labor Review, 110(5), 17–23.Google Scholar
- Hersch, J. (1991a). The impact of non-market work on market wages. American Economic Review (Papers and Proceedings), 81(2), 157–160. http://www.jstor.org/stable/2006845. Accessed 11 Feb 2011.
- Hersch, J. (1991b). Male–female differences in hourly wages: The role of human capital, working conditions, and housework. Industrial and Labor Relations Review, 44(4), 746–759. http://www.jstor.org/stable/2524461. Accessed 11 Feb 2011.
- Hersch, J., & Stratton, L.S. (1997). Housework, fixed effects, and wages of married workers. Journal of Human Resources, 32(2), 285–307. http://www.jstor.org/stable/146216.
- Hersch, J., & Stratton, L.S. (2002). Housework and wages. Journal of Human Resources, 37(1), 217–229. http://www.jstor.org/stable/3069609. Accessed 11 Feb 2011.
- Hundley, G., (2000). Male/female earnings differences in self-employment: The effect of marriage, children, and the household division of labor. Industrial and Labor Relations Review, 54(1), 95–114. http://www.jstor.org/stable/2696034. Accessed 15 Apr 2014.
- Kalleberg, A.L. & Rosenfeld, R.A. (1990). Work in the family and in the labor market: A cross-national, reciprocal analysis. Journal of Marriage and Family, 52(2), 331–346. http://www.jstor.org/stable/353030. Accessed 15 Apr 2014.
- Rybczynski, K. (2009). Are liquidity constraints holding women back? An analysis of gender in self-employment earnings. Journal of Economic Asymmetries, 6(1), 141–165.Google Scholar
- Socio-Economic Panel (SOEP) (2010). Data for years 1984–2009, version 26. doi: 10.5684/soep.v26.
- Stratton, L.S. (2012). The role of preferences and opportunity costs in determining the time allocated to housework. American Economic Review (Papers and Proceedings), 102(3), 606–611. http://www.jstor.org/stable/23245602. Accessed 15 Apr 2014.
- Wagner, G. G., Frick, J. R., & Schupp, J. (2007). The German Socio-Economic Panel Study (SOEP): Scope, evolution and enhancements. Schmollers Jahrbuch (Journal of Applied Social Science Studies), 127(1), 139–169.Google Scholar