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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 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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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 30076.

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Date of creation: Mar 2011
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Handle: RePEc:pra:mprapa:30076
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