Resource title

The Returns to Education in Entrepreneurship - Heterogeneity and Non-Linearities

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Resource description

The returns to education in self-employment are addressed in fourdifferent specifications of the relationship between log income andyears of schooling. The specifications range from a standard Mincerequation with a constant percentage increase in income to an additionalyear of schooling to the most flexible specification with dummyvariables for the different number of years of schooling split into differenttypes of education. Based on the more flexible specifications,important non-linearities and heterogeneity in the returns to educationin self-employment are found. These results are robust acrossdifferent estimation methods: OLS; Heckit correction models to handlesample selection; and IV to deal with the potential endogeneity of years of schooling. Moreover, the results are insensitive to the useof different sample years, different definitions of self-employment, anddifferent income measures for the self-employed.

Resource author

Jens Iversen, Nikolaj Malchow-Møller, Anders Sørensen

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Resource language

eng

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application/pdf

Resource resource URL

http://hdl.handle.net/10398/8225

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