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

"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 places, and by age 30 entrepreneurs made $55,000 versus $45,000 for paycheck workers, or 22% more. As they got older, the average income gap between them widened, and by age 55 the self-employed made 70% more: $134,000 versus $79,000 a year."

"The study also noted that entrepreneurs often have other sources of income when starting out, either from paid employment or a separate business, allowing them to post positive overall earnings even if their new businesses haven't yet turned a profit. But the data on average earnings also masks sharp inequality among self-employed workers, meaning that "the typical dollar in self-employment does not come from the typical self-employed individual,""

Analysis of tax and income data from 2000 to 2015 found entrepreneurs earned $27,000 annually (2012 dollars) at age 25 versus $29,000 for paid employees. By age 30 entrepreneurs earned $55,000 against $45,000 for paycheck workers, and by age 55 self-employed income averaged $134,000 compared with $79,000 for paid employees. Entrepreneurs often have other income sources early on, enabling positive overall earnings before new businesses become profitable. Income among the self-employed is highly unequal: 80% of self-employment income came from those earning $100,000 or more, while many primarily self-employed earned less than comparable paid-employed peers.

Read at Fortune