Entrepreneurship, Happiness and Supernormal Returns: Evidence from Britain and the Us

27 Pages Posted: 4 Jan 2007 Last revised: 23 Jul 2022

See all articles by David G. Blanchflower

David G. Blanchflower

Dartmouth College - Department of Economics; National Bureau of Economic Research (NBER); University of Stirling - Department of Economics

Andrew J. Oswald

University of Warwick - Department of Economics; IZA Institute of Labor Economics

Date Written: December 1992

Abstract

Do entrepreneurs earn supernormal returns, or does competitive pressure ensure that entrepreneurs receive the same utility level as workers? If those who run their own businesses get supernormal returns (or 'rents') they should be happier than those who work as employees. The paper tests this hypothesis. It uses survey data from Britain and the USA to show that, in comparison with those in regular forms of employment, the self-employed report significantly higher levels of utility as proxied by overall satisfaction data.

Suggested Citation

Blanchflower, David G. and Oswald, Andrew J., Entrepreneurship, Happiness and Supernormal Returns: Evidence from Britain and the Us (December 1992). NBER Working Paper No. w4228, Available at SSRN: https://ssrn.com/abstract=478695

David G. Blanchflower (Contact Author)

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University of Stirling - Department of Economics ( email )

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Andrew J. Oswald

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