The return-to-entrepreneurship puzzle
AbstractThe 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 30076.
Date of creation: Mar 2011
Date of revision:
entrepreneurship; earnings; twin data; education; monetary returns; nonmonetary returns; selection;
Other versions of this item:
- Hyytinen, Ari & Ilmakunnas, Pekka & Toivanen, Otto, 2011. "The return-to-entrepreneurship puzzle," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/304828, Katholieke Universiteit Leuven.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-23 (All new papers)
- NEP-ENT-2011-04-23 (Entrepreneurship)
- NEP-LAB-2011-04-23 (Labour Economics)
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