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.