https://macropaperwarehouse.com/authors/evan-schulz/Evan SchulzHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/on-the-nature-of-entrepreneurship/https://macropaperwarehouse.com/papers/on-the-nature-of-entrepreneurship/<p>This paper uses a novel longitudinal administrative dataset drawn from U.S. Internal Revenue Service (IRS) and Social Security Administration (SSA) records to characterize income dynamics and the determinants of entrepreneurial entry for pass-through business owners — sole proprietors, partners, and S corporation owners — who collectively account for over 50 percent of all U.S. business net income. The sample covers 2000–2015 and includes up to 1.3 billion person-year observations for individuals aged 25–65. The authors construct balanced panels using birth cohorts 1950–1975, impute education (college attainment) and skill (cognitive, interpersonal, manual) via machine-learning classifiers trained on CPS and O*NET data, and estimate life-cycle income profiles using a three-component model that separates individual fixed effects, group-specific time effects, and group-cohort-specific age effects.</p>