Title
The higher returns to formal education for entrepreneurs versus employees The higher returns to formal education for entrepreneurs versus employees
Author
Faculty/Department
Faculty of Applied Economics
Publication type
article
Publication
Dordrecht ,
Subject
Economics
Source (journal)
Small business economics: an international journal. - Dordrecht
Volume/pages
40(2013) , p. 1-22
ISSN
0921-898X
ISI
000314089400013
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
How valuable is formal education for entrepreneurs income relative to employees? And if the income returns to formal education are different for entrepreneurs vis-a`-vis employees, what might be a plausible explanation? To explore these questions, we analyze a large representative US panel. We show that entrepreneurs have higher returns to formal education than employees. We refer to this as the entrepreneurship returns puzzle. We run post hoc analyses to explore a number of potential explanations of this puzzle. Indirectly, our analysis indicates that the higher returns to formal education for entrepreneurs might be due to the fewer organizational constraints they face, leading to more personal control over how to use their human capital, compared to employees.
E-info
https://repository.uantwerpen.be/docman/iruaauth/a3e9ea/68a61735bd6.pdf
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