The return-to-entrepreneurship puzzle

Ari Hyytinen, Pekka Ilmakunnas*, Otto Toivanen

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

53 Citations (Scopus)


The returns to entrepreneurship are monetary and non-monetary. We offer new evidence on these returns using a large sample of male twins. Our within-twin analysis suggests that OLS estimates are downwards, and panel data estimates upwards biased. The within-twin estimates imply that entrepreneurs earn a negative earnings premium. Our within-twin analysis of non-monetary returns shows that entrepreneurs work longer hours and have greater responsibilities, but also have a greater control over their work.

Original languageEnglish
Peer-reviewed scientific journalLabour economics
Issue numberJanuary 2013
Pages (from-to)57-67
Number of pages11
Publication statusPublished - 08.11.2012
MoE publication typeA1 Journal article - refereed


  • 511 Economics
  • Entrepreneurship
  • Earnings
  • Twin data
  • Monetary returns
  • Non-monetary returns
  • Selection


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