A Proposal to Improve Our Understanding of Entrepreneurship Using the Panel Study of Income Dynamics

Posted: 8 Mar 2010

See all articles by Camilo Mondragon-Velez

Camilo Mondragon-Velez

International Finance Corporation - World Bank Group

Ximena Pena

Universidad de los Andes, Colombia

Date Written: November 21, 2008

Abstract

This paper aims to show how relatively marginal changes in the Panel Study of Income Dynamics (PSID) survey, particularly on the measurement of both financial and human capital returns to entrepreneurship, can yield sizeable benefits for research and policy on entrepreneurship. Accurate measurement of returns to all the resources invested in entrepreneurial endeavors is not only essential to understand the motivations and barriers to start a business, but it ultimately can provide the basis to improve the effectiveness of programs and policies to foster entrepreneurial activity in the economy. In fact, recent studies question the importance of pecuniary benefits in the decision to become an entrepreneur. However, these are based on measures of total earnings and sample aggregate returns. Thus, adequate individual data on business income and its components have an enormous value for both research and policy design.

JEL Classification: J24, M13

Suggested Citation

Mondragon-Velez, Camilo and Pena, Ximena, A Proposal to Improve Our Understanding of Entrepreneurship Using the Panel Study of Income Dynamics (November 21, 2008). Kauffman Symposium on Entrepreneurship and Innovation Data Proceedings, 2008, Available at SSRN: https://ssrn.com/abstract=1565519

Camilo Mondragon-Velez (Contact Author)

International Finance Corporation - World Bank Group ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

Ximena Pena

Universidad de los Andes, Colombia ( email )

Carrera Primera # 18A-12
Bogota, DC D.C. 110311
Colombia

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