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Author: Hartog, Joop
Resulting in 2 citations.
1. Hartog, Joop
van Praag, C. Mirjam
van der Sluis, Justin
If You Are So Smart, Why Aren't You an Entrepreneur? Returns to Cognitive and Social Ability: Entrepreneurs Versus Employees
Journal of Economics and Management Strategy 19,4 (Winter 2010): 947-989.
Also: https://onlinelibrary.wiley.com/doi/10.1111/j.1530-9134.2010.00274.x
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Armed Services Vocational Aptitude Battery (ASVAB); Earnings; Entrepreneurship; Noncognitive Skills

Permission to reprint the abstract has not been received from the publisher.

How valuable are cognitive and social abilities for entrepreneurs' relative to employees' earnings? We answer three questions: (1) To what extent does a composite measure of ability affect an entrepreneur's earnings relative to wages earned by employees? (2) Do different cognitive abilities (e.g., math ability, language, or verbal ability) and social ability affect earnings of entrepreneurs and employees differently?, and (3) Does the balance in these measured ability levels affect an individual's earnings? Our (difference-of-difference) estimates of the returns to ability for spells in entrepreneurship versus wage employment account for selectivity into entrepreneurial positions insofar as they are determined by fixed individual characteristics. Our robust results provide the following answers to the three questions: General ability has a stronger impact on entrepreneurial incomes than on wages. Moreover, entrepreneurs and employees benefit from different sets of specific abilities: verbal and clerical abilities have a stronger impact on wages, whereas mathematical, social, and technical ability are more valuable for entrepreneurs. The balance in the various kinds of ability also generates a higher income, but only for entrepreneurs: This finding supports Lazear's Jack-of-all-Trades theory.
Bibliography Citation
Hartog, Joop, C. Mirjam van Praag and Justin van der Sluis. "If You Are So Smart, Why Aren't You an Entrepreneur? Returns to Cognitive and Social Ability: Entrepreneurs Versus Employees." Journal of Economics and Management Strategy 19,4 (Winter 2010): 947-989.
2. Mazza, Jacopo
van Ophem, Hans
Hartog, Joop
Unobserved Heterogeneity and Risk in Wage Variance: Does More Schooling Reduce Earnings Risk?
Labour Economics 24 (October 2013): 323-338.
Also: http://www.sciencedirect.com/science/article/pii/S0927537113001061
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): British Household Panel Survey (BHPS); Earnings; Educational Attainment; Educational Returns; German Socio-Economic Panel (GSOEP); Heterogeneity; Wage Theory

We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education to data for the USA, the UK and Germany. We find that in residual wage variation, uncertainty by far dominates unobserved heterogeneity. The relation between uncertainty and level of education is not monotonic and differs among countries.
Bibliography Citation
Mazza, Jacopo, Hans van Ophem and Joop Hartog. "Unobserved Heterogeneity and Risk in Wage Variance: Does More Schooling Reduce Earnings Risk?" Labour Economics 24 (October 2013): 323-338.