Skip to Main content Skip to Navigation
Journal articles

The entrepreneurial earnings puzzle: Mismeasurement or real?

Abstract : A review of recent evidence on relative earnings from entrepreneurship versus wage work presents a puzzle: why do individuals become entrepreneurs when entrepreneurs on average apparently earn less than employees? After considering several potential explanations, we empirically analyze one: income underreporting by entrepreneurs. Using a nationwide panel survey representing U.S. households over 15 years, we estimate that entrepreneurs on average earn 4% less per year than employees. However, after correcting for income underreporting, the mean financial gain to entrepreneurship is positive and large, greater than 42%. However, we show that this estimate is built on some unpalatable model assumptions.
Complete list of metadatas

https://hal-hec.archives-ouvertes.fr/hal-00829057
Contributor : Antoine Haldemann <>
Submitted on : Saturday, June 1, 2013 - 7:03:16 PM
Last modification on : Thursday, January 11, 2018 - 6:19:31 AM

Identifiers

Collections

Citation

Thomas B. Astebro, Jing Chen. The entrepreneurial earnings puzzle: Mismeasurement or real?. Journal of Business Venturing, Elsevier, 2014, 29 (1), pp.88-105. ⟨10.1016/j.jbusvent.2013.04.003⟩. ⟨hal-00829057⟩

Share

Metrics

Record views

267