An interesting paper from Serguey Braguinsky, a visiting professor at CMU.

Research studies show that entrepreneurs earn 35% less on average than if they went to a paid job, but this study includes all self-employed occupations (like barbershops, mom-and-pop stores, etc). This paper says that in higher education industries, entrepreneurs earn more on average than wage earners.

Here's a quote from the paper:

"For example, the expected initial earnings of an entrepreneur in an education-intensive occupation who starts an independent business after just 3 years of labor market experience are more than 30 percent higher than the expected paid wage of a worker with the same observable characteristics, and this earnings differential is still positive after 20 years. In contrast, for a similar entrepreneur who starts the business after 15 years of labor market experience, the initial premium is only 2.8 percent, and it turns negative after just 4 years. These findings are very robust as they survive various refinements and changes to our definition of education-intensity of a job."

Just thought it was ycnews worthy.