There is no robust empirical support for the effect of financial incentives on the decision to work in self-employment … wages given up as an employee. Information on income from self-employment is of inferior quality and this is not just a … problem for the outside researcher, it is an imminent problem of the individual considering self-employment. We also argue …

self-employment and paid-employment. Using Spanish administrative data, we characterize the distribution and dynamics of … earnings and document lower and less dispersed earnings in self-employment. We consider alternative hypotheses and highlight … the role of lower unemployment risk in self-employment. We decompose earnings risk dynamics by estimating a life …