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Title: Smart and Illicit: Who Becomes an Entrepreneur and Do They Earn More?
Resulting in 1 citation.
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Levine, Ross Rubinstein, Yona |
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Smart and Illicit: Who Becomes an Entrepreneur and Do They Earn More? Quarterly Journal of Economics 132,2 (May 2017): 963-1018. Also: https://academic.oup.com/qje/article-lookup/doi/10.1093/qje/qjw044 Cohort(s): NLSY79 Publisher: Oxford University Press Keyword(s): Armed Forces Qualifications Test (AFQT); Current Population Survey (CPS) / CPS-Fertility Supplement; Earnings; Entrepreneurship; Illegal Activities; Occupational Aspirations; Occupational Choice; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Self-Employed Workers Permission to reprint the abstract has not been received from the publisher. We disaggregate the self-employed into incorporated and unincorporated to distinguish between "entrepreneurs" and other business owners. We show that the incorporated self-employed and their businesses engage in activities that demand comparatively strong nonroutine cognitive abilities, while the unincorporated and their firms perform tasks demanding relatively strong manual skills. People who become incorporated business owners tend to be more educated and--as teenagers--score higher on learning aptitude tests, exhibit greater self-esteem, and engage in more illicit activities than others. The combination of "smart" and "illicit" tendencies as youths accounts for both entry into entrepreneurship and the comparative earnings of entrepreneurs. Individuals tend to experience a material increase in earnings when becoming entrepreneurs, and this increase occurs at each decile of the distribution. |
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Bibliography Citation
Levine, Ross and Yona Rubinstein. "Smart and Illicit: Who Becomes an Entrepreneur and Do They Earn More?" Quarterly Journal of Economics 132,2 (May 2017): 963-1018.
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