See also 'Are Education and Entrepreneurial Income Endogenous?' in <I>Entrepreneurship Research Journal</I> (2012), 2 …(3), 1-27.<P> Education is a well-known driver of (entrepreneurial) income. The measurement of its influence, however … (entrepreneurial) income and of education. Using instrumental variables can provide a way out. However, three questions remain: whether …

This discussion paper was published in the <I> Economics of Education Review</I> (2012). Vol. 31(5), 515-523.<P> The … validity of family background variables instrumenting education in income regressions has been much criticized. In this paper … of the instrument). The size of the bias is in many cases smaller than the standard error of education’s estimated …