Reconciling gender differences in the returns to education in self-employment: Does occupation matter?

Compared to self-employed men, self-employed women have more education but considerably lower earnings, generating differences in the returns to education by gender. This paper finds evidence that men typically benefit from a complementary relationship between education and earnings. However, women are heterogenous in their returns to education. Women who self-employ in traditionally female occupations do not benefit from this complementary relationship, and women who self-employ in traditionally male occupations earn returns that are more similar to the male experience.

► Highly educated women are increasingly choosing to self-employ. ► These women have considerably lower earnings compared to men. ► This paper finds heterogeneity in the returns to education for self-employed women according to occupational choice. ► Women who self-employ in traditionally female occupations earn minimal returns on their education. ► Women who self-employ in traditionally male occupations earn returns that are more similar to the male experience.