Does Academic Entrepreneurship Pay?
47 Pages Posted: 25 Nov 2012 Last revised: 29 Apr 2013
Date Written: November 23, 2012
We investigate the private returns for academics that start new businesses. Total earnings for the universe of 478 individuals working at Swedish universities who quit to become full-time entrepreneurs between 1999 and 2008 are compiled. To the best of our knowledge, this is the first analysis to include capital gains. Entrepreneurship for academics appears a gradual process and quite episodic. Earnings are similar before and after becoming an entrepreneur and dividends and capital gains are inconsequential. But the income risk is more than three times higher in entrepreneurship.
Keywords: academic entrepreneurship, earnings, Sweden
JEL Classification: O32, J39, J62, M13
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