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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
Contact details of provider: Web page: http://www.elsevier.com/locate/labeco

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  17. Neumark, David, 1999. "Biases in twin estimates of the return to schooling," Economics of Education Review, Elsevier, vol. 18(2), pages 143-148, April.
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