If You Are So Smart, Why Aren't You an Entrepreneur? Returns to Cognitive and Social Ability: Entrepreneurs Versus Employees

Journal of Economics and Management Strategy

Volumn 19, Issue 4, 2010, Pages 947-989

  Hartog, Joop ^a,b   Van Praag, Mirjam ^a   Van Der Sluis, Justin ^a  

^a UNIVERSITY OF AMSTERDAM   (Netherlands)

^b TINBERGEN INSTITUTE   (Netherlands)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 78649604915     PISSN: 10586407     EISSN: 15309134     Source Type: Journal    
DOI: 10.1111/j.1530-9134.2010.00274.x     Document Type: Article

References (63)

1. Angrist, J. and J. Pischke, 2008, Mostly Harmless Econometrics, Princeton, NJ Princeton University Press.
2. Astebro, T. and P. Thompson, 2007, "Entrepreneurs: Jacks of All Trades or Hobos?" Working paper.
3. Astebro, T., J. Chen, and P. Thompson, 2007, "Stars and Misfits: A Theory of Occupational Choice, " Working paper.
4. Baron, R., 2000, "Psychological Perspectives on Entrepreneurship: Cognitive and Social Factors in Entrepreneurs' Success, " Current Directions in Psychological Science, 9(1), 15-18.
5. Baron, R. and G. Markman, 2003, "Beyond Social Capital: The Role of Entrepreneurs' Social Competence in their Financial Success, " Journal of Business Venturing, 18(1), 41-60.
6. Benz, M. and B. Frey, 2008, "Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy, " Economica, 75, 362-383.
7. Binet, A. and T. Simon, 1911, A Method of Measuring the Development of the Intelligence of Young Children, Lincon, IL Courier
8. Bishop, J., 1991a, "Achievement, Test Scores, and Relative Wages, " in M. Kosters, ed., Workers and their Wages: Changing Patterns in the United States, 146-181, Washington, DC Brookings Institution.
9. Bishop, J., 1991b, "The Impact of Academic Competencies on Wages, Employment and Job Performance, " Cornell University CAHRS Working paper series.
10. Blackburn, M. and D. Neumark, 1993, "Omitted-Ability Bias and the Increase in the Return to Schooling, " Journal of Labor Economics, 11(3), 521-544.
11. Blanchflower, D. and A. Oswald, 1998, "What Makes an Entrepreneur Journal of Labor Economics, 16, 26-60.
12. Borghans, L., A. Duckworth, J. Heckman, and B. Ter Weel, 2008, "The Economics and Psychology of Personality Traits, " Journal of Human Resources, 43(3), 972-1059.
13. Borghans, L., B. Ter Weel, and B. Weinberg, 2006, "People People: Social Capital and the Labor-Market Outcomes of Underrepresented Groups, " NBER Working Paper No. 11985.
14. Carrol, J., 1993, Human Cognitive Abilities: A Survey of Factor-Analytic Studies, Cambridge: Cambridge University Press.
15. Cawley, J., J. Heckman, and E. Vytlacil, 2001, "Three Observations on Wages and Measured Cognitive Ability, " Labour Economics, 8(4), 419-442.
16. Deaton, A., 2000, The Analysis of Household Surveys, Johns Hopkins University Press.
17. De Wit, G. and F. Van Winden, 1989, "An Empirical Analysis of Self-Employment in the Netherlands, " Small Business Economics, 1(4), 263-272.
18. Dougherty, C., 2000, "Numeracy, Literacy, and Earnings: Evidence from the National Longitudinal Survey of Youth, " Working Paper, Centre for Economic Performance, London
19. Elfenbein, D., B. Hamilton, and T. Zenger, 2010, "The Entrepreneurial Spawning of Scientists and Engineers: Stars, Slugs, and the Small Firm Effect, " Management Science, forthcoming.
20. Fairlie, R., 2005, "Self-Employment, Entrepreneurship, and the NLSY79, " Monthly Labor Review, 128(2), 40-47.
21. Fairlie, R. and A. Robb, 2008, Race and Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States, Cambridge, MA The MIT Press.
22. Frey, M. and D. Detterman, 2003, "Scholastic Assessment or g Psychological Science, 15(6), 373-378.
23. Gottfredson, L., 2002, "Where and Why g Matters: Not a Mystery, " Human Performance, 15(1/2), 25-46.
24. Hamilton, B., 2000, "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment, " The Journal of Political Economy, 108(3): 604-631.
25. Hansen, K., J. Heckman, and K. Muller, 2004, "The Effect of Schooling and Ability on Achievement Test Scores, " Journal of Econometrics, 121, 39-9
26. Hartog, J, 1980, "Earnings and Capability Requirements, " Review of Economics and Statistics, 60(2), 230-240.
27. Hartog, J., 2001, "On Human Capital and Individual Capabilities, " Review of Income and Wealth, 47(4), 515-540.
28. Hause, J., 1972, "Earnings Profile, Ability and Schooling, " Journal of Political Economy, 80(3), S108-S138.
29. Heckman, J. and Y. Rubinstein, 2001, "The Importance of Non-cognitive Skills: Lessons from the GED Testing Program, " American Economic Review, 91(2), Papers and Proceedings, 145-149.
30. Heckman, J., J. Stixrud, and S. Urzua, 2006, "The Effects of Cognitive and Non-Cognitive Abilities on Labor Market Outcomes and Social Behavior, " Journal of Labor Economics, 24(3), 411-481.
31. Hernstein, R. and C. Murray, 1994, The Bell Curve, New York Free Press.
32. Hmieleski, K. and M. Ensley, 2004, "An Investigation of the Linkage Between Entrepreneur Intelligence and New Venture Performance, " Working Paper, Rensselaer Polytechnic Institute
33. Horn, J. and R. Cattell, 1966, "Refinement and Test of the Theory of Fluid and Crystallized General Intelligences, " Journal of Educational Psychology, 57, 253-270.
34. Hyytinen, A., P. Ilmakunnas, and O. Toivanen, 2008, "The Return to Entrepreneurship Puzzle, " Working Paper, Helsinki School of Economics
35. Lazear, E., 2005, "Entrepreneurship, " Journal of Labor Economics, 23(4), 649-680.
36. Levitt, S. and S. Dubner, 2006, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything, New York HarperCollins.
37. Marshall, A., 1930, Principles of Economics, London Macmillan (first edition 1890).
38. McIntosh, S. and A. Vignoles, 2001, "Measuring and Assessing the Impact of Basic Skills on Labour Market Outcomes, " Oxford Economic Papers, 53(3), 453-481.
39. Mueller, G. and E. Plug, 2006, "Estimating the Effect of Personality on Male and Female Earnings, " Industrial and Labor Relations Review, 60(1), 3-21.
40. Murnane, R., J. Willett, M. Braatz, and Y. Duhaldeborde, 2001, "Do Different Dimensions of Male High School Students' Skills Predict Labor Market Success a Decade Later? Evidence from the NLSY, " Economics of Education Review, 20(4), 311-320.
41. Murnane, R., J. Willett, and F. Levy, 1995, "The Growing Importance of Cognitive Skills in Wage Determination, " Review of Economics and Statistics, 77(2), 251-266.
42. Neisser, U., G. Boodoo, T. Bouchard, A. Boykin, N. Brody, S. Ceci, D. Halpern, J. Loehlin, R. Perloff, R. Sternberg, and S. Urbina, 1996, "Intelligence: Knowns and Unknowns, " American Psychologist, 51(2), 77-101.
43. Ohyama, A., 2007, "Entrepreneurship and Advanced Technical Knowledge, " Working Paper, University of Illinois at Urbana-Champaign.
44. Paglin, M. and A. Rufolo, 1990, "Heterogeneous Human Capital, Occupational Choice, and Male-Female Earnings Differences, " Journal of Labor Economics, 8(1), 123-144.
45. Parker, S., 2009, The Economics of Self-Employment and Entrepreneurship, Cambridge, MA Cambridge University Press.
46. Parker, S., 2010, "Entrepreneurship or Intrapreneurship The Journal of Business Venturing, forthcoming.
47. Parker, S. and M. Van Praag, 2010, "The Entrepreneur's Mode of Entry: Business Takeover or New Venture Start Journal of Business Venturing, forthcoming.
48. Roberts, R., G. Goff, F. Anjoul, P. Kyllonen, G. Pallier, and L. Stankov, 2000, "The Armed Services Vocational Aptitude Battery (ASVAB): Little More than Acculturated Learning (Gc)! Learning and Individual Differences, 12(1), 81-103.
49. Ryan Krane, N. and W. Tirre, 2004, Ability Assessment in Career Counseling, " in S.D. Brown and R.W. Lent, eds., Career Development and Counseling, Hoboken, NJ John Wiley & Sons, 330-352.
50. Silva, O., 2007, "The Jack-of-all-Trades Entrepreneur: Innate Talent or Acquired Skill Economics Letters, 97, 118-123.
51. Spearman, C., 1904, "General Intelligence, Objectively Determined and Measured, " American Journal of Psychology, 15, 201-293.
52. Taubman, P. and T. Wales, 1974, Higher Education and Earnings: College Education as an Investment and a Screening Device, NBER General Series 101, New York McGraw-Hill.
53. Thorndike, E., 1904, An Introduction to theTheory of Mental and Social Measurements, New York Teachers College, Columbia University.
54. Thurstone, L. and T. Thurstone, 1941, Factorial Studies of Intelligence, Vol. Psychometric Monographs No. 2, Chicago University of Chicago Press.
55. Tobias, J., 2003, "Are Returns to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability-Earnings Relationship, " Oxford Bulletin of Economics and Statistics, 65, 1-29.
56. Van Der Sluis, J. and M. Van Praag, 2007, "Identifying the Difference in Returns to Education for Entrepreneurs and Employees: Identification by Means of Changes in Compulsory Schooling Laws, " Working Paper, University of Amsterdam
57. Van Der Sluis, J., M. Van Praag, and W. Vijverberg, 2008, "Education and Entrepreneurship Selection and Performance: A Review of the Empirical Literature, " Journal of Economic Surveys, 22(5), 795-841.
58. Van Praag, M., A. Van Witteloostuijn, and J. Van der Sluis, 2009, Returns for Entrepreneurs Versus Employees: The Effect of Education and Personal Control on the Relative Performance of Entrepreneurs Vis-à-vis Wage Employees, Tinbergen Institute Discussion Paper TI 2009-111/3, University of Amsterdam
59. Van Praag, M. and J. Cramer, 2001, "The Roots of Entrepreneurship and Labour Demand: Individual Ability and Low Risk Aversion, " Economica, 269, 45-62.
60. Van Praag, M. and P. Versloot, 2007, "What is the Value of Entrepreneurship? A Review of Recent Research, " Small Business Economics, 29(4), 351-382.
61. Wagner, J. 2003, "Testing Lazear's Jack-of-all-Trades View of Entrepreneurship with German Micro Data, " Applied Economics Letters, 10(11), 687-689.
62. Willis, R. and S. Rosen, 1979, "Education and Self-Selection, " Journal of Political Economy, 87(5), S7-S36.
63. Wong, C. and K. Law, 2002, "The Effect of Leader and Follower Emotional Intelligence on Performance and Attitude: An Exploratory Study, " Leadership Quarterly, 13(3), 243-274.