1. J. Merz and P. Böhm, Research Institute on Professions (FFB), University of Lueneburg Earnings and Working Hour Arrangements Earnings and Working Hour Arrangements – A microeconometric analysis for Self-employed and Employees with German Time Use Diary Data Joachim Merz and Paul Böhm* Earnings and Working Hour Arrangements – A microeconometric analysis for Self-employed and Employees with German Time Use Diary Data Joachim Merz and Paul Böhm* *Prof. Dr. Joachim Merz, Dipl.-Vw. Paul Böhm, University of Lüneburg, Department of Economics and Social Sciences, Research Institute on Professions (Forschungsinstitut Freie Berufe, FFB), Chair 'Statistics and Professions', Campus Scharnhorststr. 1, 21335 Lüneburg, Germany, Tel: 04131/78-2051, Fax: 04131/78-2059, e-mail: merz@uni-lueneburg.de; http://ffb.uni-lueneburg.de

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14. J. Merz and P. Böhm, Research Institute on Professions (FFB), University of Lueneburg Earnings and Working Hour Arrangements Working hour arrangement dimensions Timing of daily work Mainly within core working time Mainly outside core working time → core working time : 7:00 – 17:00 Fragmentation of daily work Not fragmented → one episode, without breaks Fragmented → two and more episode, with breaks → Breaks: min. 60 minutes

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51. J. Merz and P. Böhm, Research Institute on Professions (FFB), University of Lueneburg Earnings and Working Hour Arrangements Concluding remarks (1) Economic well-being by adding insights into particular work effort characteristics - daily timing of work and its fragmentation – and its resulting wage/income distributive effects - Employees - Self-employed as professions and entrepreneurs - Treatment effects approach

52. J. Merz and P. Böhm, Research Institute on Professions (FFB), University of Lueneburg Earnings and Working Hour Arrangements Concluding remarks (2) Descriptive results (all workers) On average: Working hour arrangements with fragmented work days, categories II and IV): they work longer, have a higher wage rate and thus an above–average income Distribution: All non-normal working hour arrangements (categories II,II,IV) compared to he normal situation (category I) show higher inequalities with regard to hours worked, wage paid, and income; one exception: the most irregular working hour arrangement (category IV) shows the most equally distributed income. The most unequal net income distribution: category III (non-core/one episode) with the most unequal working hours distribution. The descriptive distributive analysis thus has shown that timing and fragmentation of work time do have distinct consequences on the earnings distribution.

53. J. Merz and P. Böhm, Research Institute on Professions (FFB), University of Lueneburg Earnings and Working Hour Arrangements Concluding remarks (3) Microeconometric results Estimates with endogenous self-selection (treatment effects approach) explaining wages and participation (bivariate probit-approach) in different daily working hour arrangements support our interdependent two stage modelling strategy with the overall result: Employee wages in Germany are dependent on and significant different with regard to the daily working hour arrangement capturing timing and fragmentation of work. Self-employment: higher time sovereignity result in no particular wage impacts The participation probability for the core/non-core and number of episodes working time categories follow different explanatory pattern with regard to personal characteristics (demographics, human capital, education, occupational status, multiple jobs, non-market time use), demand side (business sectors), partner’s employment, household characteristics (composition, wealth) as well as a regional indicator.

54. J. Merz and P. Böhm, Research Institute on Professions (FFB), University of Lueneburg Earnings and Working Hour Arrangements Concluding remarks (4) Further Wage results Human capital, schooling Employees: Higher education raises wages significantly (+) Professions: Higher education is required for many professions (no effect) Self-employment: Particular capabilities (like risk and decision willingness) might not correlate with schooling (not sgnificant) Human capital, occupational experience Employees: Higher occupational experience will raise income/wage (significant (+)) Professions: Reputation and management qualification will raise with growing occupational experience (significant (+)) Entrepreneurs : … (not significant)

55. J. Merz and P. Böhm, Research Institute on Professions (FFB), University of Lueneburg Earnings and Working Hour Arrangements Concluding remarks (5) Gender Employees: Significant lower wages for women (-) Self-employment: Not significant (but entrpreneurs, not fragmented *) Family status (married) Employees: No family status influence (not significant) Professions: Family background important (significant (+)) Entrepreneurs: … not significant Multiple jobs results Employees: Lower specialisation with multiple jobs is less productive: lower wage (significant (-)) Self-employment: Not specific, not significant

56. J. Merz and P. Böhm, Research Institute on Professions (FFB), University of Lueneburg Earnings and Working Hour Arrangements Concluding remarks (6) Economic branch, demand side Employees: Iindustry and service section significant (+) Professions: Not significant Self-employed: Industry and service section significant (+) (not cat. IV) Region Employees: Different productivities result in lower wages: significant East Geman lower wages (-) Professions:…significant East German Lower Wages (-) Entrepreneurs: …only significant in (-) in cat. II and III The detailed findings support targeted modern economic and social policy with regard to non-traditional labour market situation and flexibility. Further research should deepen these findings and compare them with German time use data of the beginning 90s to disentangle dynamics of flexible labour market situations.

57. J. Merz and P. Böhm, Research Institute on Professions (FFB), University of Lueneburg Earnings and Working Hour Arrangements Overall: Significant differences in working hour arrangements and dependent wages between the Self-employed - with Professions and Entrepreneurs - and Employees … Many thanks ! Contact: Prof. Dr. Joachim Merz merz@uni-lueneburg.demerz@uni-lueneburg.de Dipl.-Vw. Paul Böhmboehm@uni-lueneburg.deboehm@uni-lueneburg.de http://ffb.uni-lueneburg.de