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Returns to schooling in self-employment

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  • 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, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 7, pages 307-458, 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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    Cited by:

    1. Tom Karmel & Ben Braysher, 2015. "How Much Do Tradespersons Really Earn?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(3), pages 329-344.
    2. 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.
    3. Sierdjan Koster & Martin Andersson, 2018. "When is your experience valuable? Occupation-industry transitions and self-employment success," Journal of Evolutionary Economics, Springer, vol. 28(2), pages 265-286, April.
    4. Bairagya Indrajit, 2020. "Returns to education in self-employment in India: A comparison across different selection models," WIDER Working Paper Series wp2020-5, World Institute for Development Economic Research (UNU-WIDER).
    5. Indrajit Bairagya, 2020. "Returns to education in self-employment in India: A comparison across different selection models," WIDER Working Paper Series wp-2020-5, World Institute for Development Economic Research (UNU-WIDER).
    6. 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.
    7. Nikos Bozionelos & Giorgos Bozionelos & Panagiotis Polychroniou & Konstantinos Kostopouplos, 2014. "Mentoring receipt and personality: Evidence for non-linear relationships," Post-Print hal-00911043, HAL.
    8. 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.
    9. 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.
    10. Kathryn Shaw & Anders Sørensen, 2019. "The Productivity Advantage of Serial Entrepreneurs," ILR Review, Cornell University, ILR School, vol. 72(5), pages 1225-1261, October.
    11. Parker, Simon C., 2013. "Do serial entrepreneurs run successively better-performing businesses?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 652-666.
    12. Panka Bencsik & Tuugi Chuluun, 2021. "Comparative well-being of the self-employed and paid employees in the USA," Small Business Economics, Springer, vol. 56(1), pages 355-384, January.
    13. Xie, Zhimin & Wang, Xia & Xie, Lingmin & Duan, Kaifeng, 2021. "Entrepreneurial ecosystem and the quality and quantity of regional entrepreneurship: A configurational approach," Journal of Business Research, Elsevier, vol. 128(C), pages 499-509.

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