Is college education worth it? Evidence from its impacts on entrepreneurship in the United States

Abstract

Using the Current Population Survey (CPS) March Supplement data between 1989 and 2011, the article examines the impacts of college education on the likelihood of self-employment and on entrepreneurs' annual income in the United States. The primary results suggest that individuals with college education are more likely to have their own businesses than those without; entrepreneurs with college education receive a significantly higher annual income than those without. Specifically, college education is more effective in promoting Black and Hispanic entrepreneurs than other ethnic groups. Women with a college degree are more inclined to be self-employed and earn more than those without college education. However, the influences of college education are stronger for men than for women on self-employment and annual income.

En s'appuyant sur les données complémentaires, publiées en mars 2015, de l'enquête sur la population actuelle (Current Population Survey) aux USA (données de 1989 à 2011), cet article examine les impacts de l'éducation supérieure sur la probabilité de l'auto-emploi et sur le revenu annuel des entrepreneurs aux États-Unis. Les résultats préliminaires suggèrent que les personnes ayant une éducation supérieure sont plus susceptibles de posséder leur propre entreprise que celles qui n'ont pas ce niveau d'éducation; que les entrepreneurs ayant reçu une éducation supérieure ont un revenu annuel considérablement plus élevé que les autres. Plus précisément, l'éducation supérieure est plus efficace pour la promotion des entrepreneurs noirs et d'origine hispanique que pour ceux appartenant à d'autres groupes ethniques. Les femmes qui possèdent un diplôme universitaire sont plus enclines à se tourner vers l'auto-emploi et gagnent plus que celles qui ne sont pas allées à l'université. Cependant, en ce qui concerne l'auto-emploi et le revenu annuel, les influences de l'éducation supérieures sont plus fortes chez les hommes que chez les femmes.

Keywords:

• college education
• self-employment
• entrepreneurial income
• minority entrepreneurs

Mots-clés:

• éducation supérieure
• auto-emploi
• revenu des entrepreneurs
• entrepreneurs issus des minorités ethniques

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This research was supported by University of Wisconsin-Whitewater under CoBE Entrepreneurial Leadership Grant Spring 2012.

Notes on contributors

Xuguang Guo

Xuguang Guo is an assistant professor of Management and Human Resources at the California State Polytechnic University, Pomona. His research interests include human resource management, entrepreneurship, workers' compensation, and health insurance.

Wei Chen

Wei Chen is an associate professor of Management of College of Business at University of Mary Washington. Her research interests are in entrepreneurship, strategic management, international business, and business history.

Andy Yu

Andy Yu is an assistant professor of Management at the University of Wisconsin-Whitewater. His current research interest is in family business and strategic entrepreneurship.