Are They All Like Bill, Mark, and Steve? The Education Premium for Entrepreneurs

Fabiano Schivardi and Claudio Michelacci

No 12312, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We calculate the average yearly income obtained by entrepreneurs during their venture using the Survey of Consumer Finances since the late 1980s. 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. The difference more than doubles at the higher quantiles of the income distribution. In the late 1980s, differences were close to zero. The rise in the postgraduate premium is mainly due to increased complementarity between higher education and past experience.

Keywords: Skill premium; entrepreneurship (search for similar items in EconPapers)
JEL-codes: J24 J31 M13 (search for similar items in EconPapers)
Date: 2017-09
New Economics Papers: this item is included in nep-edu, nep-ent and nep-lma
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Are they all like Bill, Mark, and Steve? The education premium for entrepreneurs (2020)
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)
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