How does the income of self-employed individuals compare to that of regular employees in various industries and sectors?
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Income disparities between self-employed individuals and regular employees vary across industries and sectors. Research indicates that self-employment tends to pay more than regular employment for individuals at the top of the earnings distribution, particularly in both Eastern and Western Europe . However, for those below the median earnings, self-employment yields considerably less income compared to regular employment, with this trend being more pronounced in Western Europe due to higher protection for regular employees . In specific regions like Lithuania, the average gross monthly self-employment income differs from the average wage of employees, showcasing variations in income levels based on employment type . Additionally, in Serbia, self-employed individuals, especially solo entrepreneurs and those in family enterprises, face higher poverty risks compared to employees, particularly if they are male, low-skilled, or young entrepreneurs .
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| Papers (5) | Insight |
|---|---|
3 Citations | Self-employed individuals generally have lower income levels compared to regular employees across different industries and sectors, with income disparities being more pronounced among regular employees. |
| Self-employed individuals, especially solo entrepreneurs and those in family enterprises, face higher poverty risks compared to regular employees. Men, low-skilled, and young entrepreneurs are particularly vulnerable. | |
| The self-employed average wage is calculated differently from employees. In Lithuania, the employee annual gross average wage is EUR 16,844 in 2021, while self-employed income is based on mean gross monthly earnings. | |
| Self-employed workers face higher income instability compared to regular employees, especially in Belgium and France, while the Netherlands shows a less significant income gap between the two groups. | |
3 Citations | Self-employment in the EU generally pays more than regular employment for high earners but less for those below the median, across different skill levels and occupations. |
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