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Title: Why Are the Returns to Education Higher for Entrepreneurs Than for Employees?
Resulting in 1 citation.
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van der Sluis, Justin van Praag, C. Mirjam van Witteloostuijn, A. |
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Why Are the Returns to Education Higher for Entrepreneurs Than for Employees? Working Paper, Faculty of Economics and Business, University of Amsterdam, January 2006. Also: http://www1.fee.uva.nl/pp/bin/408fulltext.pdf Cohort(s): NLSY79 Publisher: Faculty of Economics and Business, University of Amsterdam Keyword(s): Earnings; Educational Returns; Entrepreneurship; Income; Locus of Control (see Rotter Scale); Rotter Scale (see Locus of Control); Self-Employed Workers; Variables, Instrumental Permission to reprint the abstract has not been received from the publisher. We compare the returns to education (RTE) for entrepreneurs and employees, based on 19 waves of the NLSY database. By using instrumental variable techniques (IV) and taking account of selectivity, we find that the RTE are significantly higher for entrepreneurs than for employees (18.3 percent and 9.9 percent, respectively). We perform various analyses in an attempt to explain the difference. We find (indirect) support for the argument that the higher RTE for entrepreneurs is due to fewer (organizational) constraints faced by entrepreneurs when optimizing the profitable employment of their education. |
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Bibliography Citation
van der Sluis, Justin, C. Mirjam van Praag and A. van Witteloostuijn. "Why Are the Returns to Education Higher for Entrepreneurs Than for Employees?." Working Paper, Faculty of Economics and Business, University of Amsterdam, January 2006. |