Ruhr Economic Papers

Ruhr Economic Papers #751

The Role of Hybrid Entrepreneurship in Explaining Multiple Job Holders’ Earnings Structure

by Matthias Schulz, Diemo Urbig and Vivien Procher

RWI, 04/2018, 14 S./p., 8 Euro, ISBN 978-3-86788-872-1 DOI: 10.4419/86788872

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Abstract

Despite the high prevalence of hybrid entrepreneurs among multiple job holders, research on hybrid entrepreneurship and multiple job holding has largely evolved independently from each other. We take a first step for a fruitful exchange between both research streams by building on hybrid entrepreneurship theories to explain why multiple job holders frequently have higher hourly earnings in their second job compared to their main job. Consistent with these entrepreneurship theories, our empirical analysis, based on the British Household Panel Survey (1991-2008), demonstrates that engaging in self-employment as second job significantly increases the probability of having higher average earnings in this second job, compared to being paid employed in both occupations. Furthermore, we explore the roles of gender and household composition in explaining multiple job holders’ earnings structure.

JEL-Classification: L26, J31, M13

Keywords: Multiple job holding; self-employment; hybrid entrepreneurship; earnings

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