TY  - RPRT
        AU  - Sluis, Justin van der
AU  - Praag, Mirjam C. van
AU  - Witteloostuijn, Arjen van
        TI  - Why Are the Returns to Education Higher for Entrepreneurs than for Employees?
        PY  - 2007/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3058
        UR  - https://www.iza.org/index.php/publications/dp3058
        AB  - We compare the returns to education (RTE) for entrepreneurs and employees, based on 19 waves of the NLSY database. By using instrumental variable techniques (IV) and taking account of selectivity, we find that the RTE are significantly higher for entrepreneurs than for employees (18.3 percent and 9.9 percent, respectively). We perform various analyses in an attempt to explain the difference. We find (indirect) support for the argument that the higher RTE for entrepreneurs is due to fewer (organizational) constraints faced by entrepreneurs when optimizing the profitable employment of their education.
        KW  - entrepreneurship
KW  - self-employment
KW  - returns to education employment
        ER  -