Jumping straight to the conclusion... "The same individual has a 30% higher return to general ability when active as an entrepreneur than when working as an em

Jumping straight to the conclusion... "The same individual has a 30% higher return to general ability when active as an entrepreneur than when working as an employee. Nevertheless, the resulting earnings are higher as an entrepreneur than as an employee only for the upper echelon of the general ability distribution. This suggests that, if the choice for entrepreneurship hinges on expected earnings, only the smartest people become entrepreneurs. However, as indicated by the results in Table A2 of the Appendix, general ability is not a factor that affects people’s occupational choice. In fact, there is some negative effect of general ability but it is not significant." "These results suggest that, again if occupational choices are based on expected earnings differentials, people with high levels of math, technical and social abilities become entrepreneurs, whereas people with relatively high levels of clerical and language abilities become wage employees."