Educational Attainment and Other Characteristics of the Self-Employed: An Examination Using Data from the Panel Study of Income Dynamics
Chad M. Moutray
U.S. Small Business Administration, Office of Advocacy
December 11, 2007
Hudson Institute Research Paper No. 07-06
This study examines the relationship between education and the choice to become self-employed using Panel Study of Income Dynamics data. It finds that educational attainment is an important determinant of self-employment. Goods-producing entrepreneurs tend to be in construction, whereas service-producing industries with a greater presence of the self-employed are in the "soft" service sectors. Multivariate logit regressions show that heads of household with post-baccalaureate experience are up to 8.3 percent more likely to be self-employed. Other characteristics include wealth (home ownership or the value of one's home), prior military service, age, marital status, race, Internet usage, and population size.
Number of Pages in PDF File: 34
Keywords: education, human capital, self-employed, self-employment, panel study of income dynamics, PSID, military service, wealth
JEL Classification: I2, J23, J24, M13working papers series
Date posted: December 12, 2007 ; Last revised: February 5, 2008
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