In a recent working paper Chad Moutray, the Chief Economist of the Office of Advocacy of the U.S. Small Business Administration) analyzed the earnings of the class of 1993 ten years after they graduated. He found something that I summarize in the table below and have started to show to all my students.
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People who go into business for themselves are more likely to earn more than $100,000 per year than people who work for a wage in the private sector. But they are also much more likely to earn less than $20,000.
Entrepreneurship: The Road to Riches (and Poverty) : Innovation :: American Express OPEN Forum
