The Return-to-Entrepreneurship Puzzle
37 Pages Posted: 8 Apr 2011
There are 2 versions of this paper
Date Written: April 5, 2011
Abstract
The returns to entrepreneurship are monetary and non-monetary. We offer new evidence on these returns using a large sample of genetically identical male twins. Our within-twin analysis suggests that OLS estimates are downwards, and traditional first-differenced panel data estimates upwards biased. We find no differences in the earnings of men with either low or high education. Our within-twin analysis of non-monetary returns shows that entrepreneurs with low education work longer hours and have greater responsibilities, but also face a reduced risk of divorce and less monotonous work tasks. The same does not apply to highly educated entrepreneurs.
Keywords: entrepreneurship, earnings, twin data, education, monetary returns, nonmonetary returns, selection
JEL Classification: L26, J24
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Sticking it Out: Entrepreneurial Survival and Liquidity Constraints
By Douglas Holtz-eakin, David Joulfaian, ...
-
Entrepreneurial Decisions and Liquidity Constraints
By Douglas Holtz-eakin, David Joulfaian, ...
-
Liquidity Constraints, Household Wealth and Entrepreneurship
By Annamaria Lusardi and Erik Hurst
-
What Makes an Entrepreneur? Evidence on Inheritance and Capital Constraints
-
The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment