TY  - SER
AU  - ¿stebro, Thomas
TI  - The entrepreneurial earnings puzzle: Mismeasurement or real?
PY  - 2014///
KW  - Income Underreporting
KW  - Returns
KW  - Entrepreneurship
N2  - A review of recent evidence on relative earnings from entrepreneurship versus  wage work presents a puzzle: why do individuals become entrepreneurs when entrepreneurs on average apparently earn less than employees? After considering several potential explanations, we empirically analyze one: income underreporting by entrepreneurs. Using a nationwide panel survey representing U.S. households over 15 years, we estimate that entrepreneurs on average earn 4% less per year than employees. However, after correcting for income underreporting, the mean financial gain to entrepreneurship is positive and large, greater than 42%. However, we show that this estimate is built on some unpalatable model assumptions
ER  -