Educational Attainment and Other Characteristics of the Self-Employed: An Examination Using Data from the Panel Study of Income Dynamics

34 Pages Posted: 12 Dec 2007 Last revised: 5 Feb 2008

See all articles by Chad M. Moutray

Chad M. Moutray

National Association of Manufacturers

Date Written: December 11, 2007

Abstract

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.

Keywords: education, human capital, self-employed, self-employment, panel study of income dynamics, PSID, military service, wealth

JEL Classification: I2, J23, J24, M13

Suggested Citation

Moutray, Chad M., Educational Attainment and Other Characteristics of the Self-Employed: An Examination Using Data from the Panel Study of Income Dynamics (December 11, 2007). Hudson Institute Research Paper No. 07-06, Available at SSRN: https://ssrn.com/abstract=1070835 or http://dx.doi.org/10.2139/ssrn.1070835

Chad M. Moutray (Contact Author)

National Association of Manufacturers ( email )

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