Are They All Like Bill, Mark, and Steve? The Education Premium for Entrepreneurs
Claudio Michelacci and
Fabiano Schivardi ()
No 12312, CEPR Discussion Papers from C.E.P.R. Discussion Papers
We rely on the Survey of Consumer Finances to study the return to education of US entrepreneurs since the late 1980s. We calculate the average yearly income that an entrepreneur expects to obtain during his venture, combining labor income, dividend payments, and capital gains upon selling the business. We find that the premium for postgraduate education has increased substantially more for entrepreneurs than for employees. Today an entrepreneur with a postgraduate degree earns on average \$100,000 a year more than one with a college degree. And the difference is substantially greater at the higher quantiles of the income distribution. In the late 1980s, the differences had been close to zero. The rise in the postgraduate premium is mainly due to increased complementarity between the advanced formal skills provided by higher education and the applied practical expertise acquired through past labor market experience. In combination, these two factors have become increasingly valuable to running successful businesses.
Keywords: entrepreneurship; skill premium (search for similar items in EconPapers)
JEL-codes: J24 J31 M13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-ent and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at email@example.com
Working Paper: Are They All Like Bill, Mark, and Steve? The Education Premium for Entrepreneurs (2017)
Working Paper: Are They All Like Bill, Mark, and Steve? The Education Premium for Entrepreneurs (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:12312
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=12312
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().