The Returns to Education in Entrepreneurship

Heterogeneity and Non-Linearities

Jens Iversen, Nikolaj Malchow-Møller, Anders Sørensen

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

The returns to education in self-employment are addressed in four different specifications of the relationship between log income and years of schooling. The specifications range from a standard Mincer equation with a constant percentage increase in income for an additional year of schooling to the most flexible specification with dummy variables for different combinations of years of schooling and fields of study. Based on the more flexible specifications, important non-linearities and heterogeneity in the returns to education in self-employment are found. These results are robust across different estimation methods: OLS, Heckit correction models handling sample selection, and IV dealing with the potential endogeneity of years of schooling. Moreover, the results are robust to the use of different sample years, different definitions of self-employment, and different income measures for the self-employed.
OriginalsprogEngelsk
TidsskriftEntrepreneurship Research Journal
Vol/bind1
Udgave nummer3
Sider (fra-til)1-36
StatusUdgivet - 2011

Bibliografisk note

Artikel 5

Emneord

  • Returns to education
  • Entrepreneurs
  • Instruments
  • Sample selection

Citer dette

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The Returns to Education in Entrepreneurship : Heterogeneity and Non-Linearities. / Iversen, Jens; Malchow-Møller, Nikolaj; Sørensen, Anders.

I: Entrepreneurship Research Journal, Bind 1, Nr. 3, 2011, s. 1-36.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

T1 - The Returns to Education in Entrepreneurship

T2 - Heterogeneity and Non-Linearities

AU - Iversen, Jens

AU - Malchow-Møller, Nikolaj

AU - Sørensen, Anders

N1 - Article 5

PY - 2011

Y1 - 2011

N2 - The returns to education in self-employment are addressed in four different specifications of the relationship between log income and years of schooling. The specifications range from a standard Mincer equation with a constant percentage increase in income for an additional year of schooling to the most flexible specification with dummy variables for different combinations of years of schooling and fields of study. Based on the more flexible specifications, important non-linearities and heterogeneity in the returns to education in self-employment are found. These results are robust across different estimation methods: OLS, Heckit correction models handling sample selection, and IV dealing with the potential endogeneity of years of schooling. Moreover, the results are robust to the use of different sample years, different definitions of self-employment, and different income measures for the self-employed.

AB - The returns to education in self-employment are addressed in four different specifications of the relationship between log income and years of schooling. The specifications range from a standard Mincer equation with a constant percentage increase in income for an additional year of schooling to the most flexible specification with dummy variables for different combinations of years of schooling and fields of study. Based on the more flexible specifications, important non-linearities and heterogeneity in the returns to education in self-employment are found. These results are robust across different estimation methods: OLS, Heckit correction models handling sample selection, and IV dealing with the potential endogeneity of years of schooling. Moreover, the results are robust to the use of different sample years, different definitions of self-employment, and different income measures for the self-employed.

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KW - Instruments

KW - Sample selection

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