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Returns to schooling in self-employment

Author

Listed:
  • Iversen, Jens
  • Malchow-Møller, Nikolaj
  • Sørensen, Anders

Abstract

This paper challenges the idea that returns to schooling in self-employment are similar to those in wage work by establishing a non-linear relationship with very low returns for most educational levels in self-employment. We conclude that previous log-linear specifications in the self-employment literature have missed significant variation in the true relationship between education and earnings.

Suggested Citation

  • Iversen, Jens & Malchow-Møller, Nikolaj & Sørensen, Anders, 2010. "Returns to schooling in self-employment," Economics Letters, Elsevier, vol. 109(3), pages 179-182, December.
  • Handle: RePEc:eee:ecolet:v:109:y:2010:i:3:p:179-182
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    References listed on IDEAS

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    1. Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2006. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," Handbook of the Economics of Education, Elsevier.
    2. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2008. "Education And Entrepreneurship Selection And Performance: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 795-841, December.
    3. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
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    Citations

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    Cited by:

    1. Fossen, Frank M. & Büttner, Tobias J.M., 2013. "The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees," Economics of Education Review, Elsevier, vol. 37(C), pages 66-84.
    2. Jens Iversen & Nikolaj Malchow-Møller & Anders Sørensen, 2016. "Success in entrepreneurship: a complementarity between schooling and wage-work experience," Small Business Economics, Springer, vol. 47(2), pages 437-460, August.
    3. Nikos Bozionelos & Giorgos Bozionelos & Panagiotis Polychroniou & Konstantinos Kostopouplos, 2014. "Mentoring receipt and personality: Evidence for non-linear relationships," Post-Print hal-00911043, HAL.
    4. Iversen Jens & Malchow-Møller Nikolaj & Sørensen Anders, 2011. "The Returns to Education in Entrepreneurship: Heterogeneity and Non-Linearities," Entrepreneurship Research Journal, De Gruyter, vol. 1(3), pages 1-38, July.
    5. Bozionelos, Nikos & Bozionelos, Giorgos & Polychroniou, Panagiotis & Kostopoulos, Kostantinos, 2014. "Mentoring receipt and personality: Evidence for non-linear relationships," Journal of Business Research, Elsevier, vol. 67(2), pages 171-181.
    6. Kathryn L. Shaw & Anders Sørensen, 2017. "The Productivity Advantage of Serial Entrepreneurs," NBER Working Papers 23320, National Bureau of Economic Research, Inc.
    7. Parker, Simon C., 2013. "Do serial entrepreneurs run successively better-performing businesses?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 652-666.

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