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Author: van Praag, Mirjam
Resulting in 1 citation.
1. van Praag, Mirjam
van Witteloostuijn, Arjen
van der Sluis, Justin
The Higher Returns to Formal Education for Entrepreneurs versus Employees
Small Business Economics 40,2 (February 2013): 375-396.
Also: http://link.springer.com/article/10.1007/s11187-012-9443-y
Cohort(s): NLSY79
Publisher: Springer
Keyword(s): Education; Educational Returns; Employment; Entrepreneurship; Income

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

How valuable is formal education for entrepreneurs’ income relative to employees’? And if the income returns to formal education are different for entrepreneurs vis-à-vis employees, what might be a plausible explanation? To explore these questions, we analyze a large representative US panel. We show that entrepreneurs have higher returns to formal education than employees. We refer to this as the entrepreneurship returns puzzle. We run post hoc analyses to explore a number of potential explanations of this puzzle. Indirectly, our analysis indicates that the higher returns to formal education for entrepreneurs might be due to the fewer organizational constraints they face, leading to more personal control over how to use their human capital, compared to employees.
Bibliography Citation
van Praag, Mirjam, Arjen van Witteloostuijn and Justin van der Sluis. "The Higher Returns to Formal Education for Entrepreneurs versus Employees ." Small Business Economics 40,2 (February 2013): 375-396.