This study investigates the income of self-employed based on the panel "Labour Markets and Social Security” of the Institute of Employment Research, Nuremberg. The analysis focuses on the socio-economic characteristics of self-employed and attempts to explain why some of them are entitled to a means-tested benefit called Unemployment Benefit II. On the one hand, the results stress the importance of the situation of the household, time spent for child care but also health problems regarding the reasons why self-employed are working poor. On the other hand, economic aspects, like a bad profit situation, are relevant, too. Since detailed information on the enterprises of working poor self-employed is missing better data and further research is needed.
Pahnke, A.; May-Strobl, E.; Schneck, S. (2014): Die Einkommenssituation von Selbstständigen und die Inanspruchnahme staatlicher Leistungen auf Basis des SGB II, in: Institut für Mittelstandsforschung Bonn (Hrsg.): IfM-Materialien Nr. 226, Bonn.