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The return-to-entrepreneurship puzzle

  • Hyytinen, Ari
  • Ilmakunnas, Pekka
  • Toivanen, Otto

The returns to entrepreneurship are monetary and non-monetary. We offer new evidence on these returns using a large sample of male twins. Our within-twin analysis suggests that OLS estimates are downwards, and panel data estimates upwards biased. The within-twin estimates imply that entrepreneurs earn a negative earnings premium. Our within-twin analysis of non-monetary returns shows that entrepreneurs work longer hours and have greater responsibilities, but also have a greater control over their work.

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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 20 (2013)
Issue (Month): C ()
Pages: 57-67

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Handle: RePEc:eee:labeco:v:20:y:2013:i:c:p:57-67
DOI: 10.1016/j.labeco.2012.11.002
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