This paper focuses on the entrepreneurial undertaking of immigrants and natives in Germany. We first study factors that … affect the sorting of individuals into self-employment and then we investigate whether self-employment has a differential … effect on the wages of individual workers and can lead them to economic success. We employ recent data from the German …

-productivity profiles and find that productivity increases until the age range of 50-54, whereas wages peak around the age 40-44. At younger … ages, wages increase in line with productivity gains but as prime-age approaches, wage increases lag behind productivity … consistent with underpayment followed by overpayment type of policies. -- aging ; productivity ; wages …