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

Fabiano Schivardi and Claudio Michelacci

No 12312, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://cepr.org/publications/DP12312 (application/pdf)
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 subscribers@cepr.org

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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:12312

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP12312

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 ().