Regional differences in returns to education for entrepreneurs versus wage earners
Tokila, A., & Tervo, H. (2011). Regional differences in returns to education for entrepreneurs versus wage earners. The Annals of Regional Science, 47 (3), 689-710. doi:10.1007/s00168-010-0374-8
Published inThe Annals of Regional Science
© Springer-Verlag 2010. This is a final draft version of an article whose final and definitive form has been published by Springer. Published in this repository with the kind permission of the publisher.
Many studies suggest that rates of return to schooling are lower for entrepreneurs than for employees, although the opposite has also been reported. This paper analyses the returns to education for entrepreneurs in urban and rural regions in Finland and compares these to the returns for wage earners. These areas show different rates of self-employment, higher rates being found in rural areas and lower rates in urban areas. The analysis is based on a rich, register-based dataset that includes a 7% random sample of all Finns. To avoid potential sources of bias, Mincer-type income equations are estimated using different estimation procedures. The results show regional variation in returns to education. In rural areas, returns to education are somewhat higher for entrepreneurs than for wage earners. Highly educated entrepreneurs especially gain advantage from their education. In urban areas as well as in the entire country, the returns for the two occupation groups are rather similar.
MetadataShow full item record
- Kauppakorkeakoulu