Entrepreneurship and Earnings among Young Adults from Disadvantaged Families |
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Authors: | Email author" target="_blank">Robert?W?FairlieEmail author |
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Institution: | (1) Department of Economics, University of California, Santa Cruz, CA, 95064, U.S.A |
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Abstract: | Academicians and policymakers have argued that entrepreneurship provides a route out of poverty and an alternative to unemployment
or discrimination in the labor market. Existing research, however, provides little evidence from longitudinal data on the
relationship between business ownership and economic advancement for disadvantaged groups. I use data from the National Longitudinal
Survey of Youth (NLSY) to examine the earnings of young business owners from disadvantaged families and make comparisons to
young wage/salary workers from disadvantaged families. For young men from disadvantaged families, I find some evidence that
self-employed business owners earn more than wage/salary workers. In contrast, I find that for young women from disadvantaged
families business owners earn less than wage/salary workers. The results from these earnings comparisons are somewhat sensitive
to the use of different measures of income and econometric models. |
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Keywords: | entre preneurship business owners disadvantaged |
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