Arbeitspapier
The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees
We assess the relevance of formal education for the productivity of the self-employed and distinguish between opportunity entrepreneurs, who voluntarily pursue a business opportunity, and necessity entrepreneurs, who lack alternative employment options. We expect differences in the returns to education between these groups because of different levels of control. We use the German Socio-economic Panel and account for the endogeneity of education and non-random selection. The results indicate that the returns to a year of education for opportunity entrepreneurs are 3.5 percentage points higher than the paid employees' rate of 8.1%, but 6.5 percentage points lower for necessity entrepreneurs.
- Language
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Englisch
- Bibliographic citation
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Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 482
- Classification
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Wirtschaft
Labor Demand
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Education and Research Institutions: General
Entrepreneurship
- Subject
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returns to education
opportunity
necessity
entrepreneurship
- Event
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Geistige Schöpfung
- (who)
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Fossen, Frank M.
Büttner, Tobias J. M.
- Event
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Veröffentlichung
- (who)
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Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
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Berlin
- (when)
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2012
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fossen, Frank M.
- Büttner, Tobias J. M.
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2012
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Risk Attitudes of Nascent Entrepreneurs: New Evidence from an Experimentally-Validated Survey
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The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees
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The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees
Opportunity versus necessity entrepreneurship: Two components of business creation
Opportunity versus Necessity Entrepreneurship: Two Components of Business Creation
Opportunity versus necessity entrepreneurship: Two components of business creation
The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees
The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees
The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees
Risk Attitudes of Nascent Entrepreneurs: New Evidence from an Experimentally-Validated Survey
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