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NOTE: Since 2009 the title of the International Journal of Entrepreneurship Education (IJEE) has been changed to the title above.  ISSN numbers: IJEE 1649-2269 and IRE 2009-2822

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ISSN Number: 2009-2822. Frequency: 4 Issues per year (online only)  

Article #1531 - Re-Estimating the Returns to Education by Employment Status: Paid Employed vs. Own-Account Workers vs. Employers

IRE Vol 14: Issue 2, 2016 , Pages 171-188

Author(s): Jesús Iglesias (Department of Economics, University of Huelva, Spain), Mónica Carmona and Enrique Ferradás (Department of Business Administration, University of Huelva, Spain)

This article is devoted to the exploration of the differences in the returns to education among wage earners and self-employed workers, while distinguishing between own-account workers and employers. Using a data base of EU-countries, we provide new evidence that qualifies some previous empirical findings found in the literature. In particular, we find that tertiary education significantly improves the returns to education for employers (relative to wage earners) while secondary education significantly improves the returns to education for own-account workers (relative to wage earners). However, relative to wage earners we also find a negative impact on earnings of self-employment activity as such (i.e., unrelated to education levels). This holds both for own-account workers and employers.

Keywords: entrepreneurship, education returns, endogeneity bias, signalling, human capital, EU-15

JEL-classifications: L26, J24, C10, N30, O52

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