Magazine article The Small Business Advocate

Education, Military Service, and Wealth Predict Self-Employment

Magazine article The Small Business Advocate

Education, Military Service, and Wealth Predict Self-Employment

Article excerpt

Years of education, military service, and household wealth are strong predictors of self-employment, according to a new working paper from the Office of Advocacy. The paper finds that individuals with prior military experience are up to 11 percent more likely to be self-employed than the entire population. An individual's educational level can increase the likelihood of self-employment by as much as 8.3 percent.

"We often talk about the importance of education to our own personal fulfillment and to the economy as a whole," said Advocacy's Chief Economist Chad Moutray, who wrote the paper. "This study shows that educational attainment is also a strong predictor of selfemployment, with additional years of college significantly increasing the chance of being one's own boss." He added, "Homeownership-a measure of wealth-and veteran status are also vital."

The paper, Educational Attainment and Other Characteristics of the Self-Employed: An Examination using Data from the Panel Study of Income Dynamics, analyzed data from the Panel Study of Income Dynamics (PSID) for 2003. …

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