nygazet.com logo

Entrepreneurs can make up to 70% more than paid employees per year, but there's high inequality among the self-employed

Entrepreneurs can make up to 70% more than paid employees per year, but there's high inequality among the self-employed
business • 9/27/2025

But "the typical dollar in self-employment does not come from the typical self-employed individual," according to a Minneapolis Fed study.

In an analysis of tax and income data from 2000 to 2015, the study found the average entrepreneur made $27,000 annually (in 2012 dollars) at age 25—slightly less than the $29,000 for a paid employee at the same age. But those workers soon switched pl... [2445 chars]