We assess the relevance of formal education on the productivity of the self-employed and distinguish between opportunity entrepreneurs, who voluntarily pursue a business opportunity, and necessity entrepreneurs, who lack alternative employment options. We expect differences in the returns to...

Folklore has it that the comparatively low proportion of self-employed in Germany is in part due to a habit that might be termed 'stigmatisation of failure': taking a second chance to build one's own firm after failing as a self-employed is said to be much more difficult here than in other...