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The economic transformations of modern industrial societies have changed the labor markets in terms ofindustrial relations and occupational structure. The transformation of the traditional welfare state, thederegulation of the labor markets, the technological change and the reorganization of industrial structuresinfluenced strongly the attitude of individuals towards their preferred labor contract. The structural change of theoccupational structure was one of the results of this tendency. In particular the self-employed and freelancershave been affected and are a driving factor of labor market changings. On the one side the value of autonomyregarding industrial relations is becoming more important for employees. On the other side employers want toget rid of social security contributions. As a result the multitudinousness of these professions increased.The increasing varieties of occupations among the self-employed and freelancers influenced strongly theirincome distribution. Recent studies for Germany have shown a great dispersion and a heterogeneous structure ofearnings in particular of freelancers (liberal professions) and self-employed. Though there are a variety ofinternational income distribution studies, but – as to the best to our knowledge – no study focusing on the selfemployedand freelancers within the total labor force. In our study we concentrate on the income distribution ofself-employed and freelancers in different European countries. Based on the Luxembourg Income Study (LIS)we analyze five different European countries and the United States structured by different types of welfare statesaccording to Esping Anderson. We analyze income distributional aspects, an occupational decomposition à laShorrocks, and re-distributional effects of the tax and transfer systems.

The Distribution and Re-Distribution of Income of Selfemployed as Freelancers and Entrepreneurs in Europe