Education is argued to be an important driver of the decision to start a business. The measurement of its influence … US. Theeffect of education on the decision to become self-employed is found to be strongly positive,much higher than the … estimated effect in case no instrumental variables are used. That is, thehigher the respondent's level of education, the greater …

Education is a well-known driver of (entrepreneurial) income. The measurement of its influence, however, suffers from …) income and of education. Using instrumental variables can provide a way out. However, three questions remain: whether … that the relationship between education and entrepreneurial income is indeed endogenous and that the impact of endogeneity …

The validity of family background variables instrumenting education in income regressions has been much criticized. In … (perfect validity of the instrument). The size of the bias is in many cases smaller than the standard error of education …