Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment

摘要: Possible explanations for earnings differentials in self-employment and paid employment are investigated. The empirical results suggest that the nonpecuniary benefits of substantial: Most entrepreneurs enter persist business despite fact they have both lower initial growth than employment, implying a median differential 35 percent individuals 10 years. cannot be explained by selection low-ability employees into is similar three alternative measures across industries. Furthermore, estimated may understate differences compensation sectors since fringe not included measure employee compensation.