Education is a well-known driver of (entrepreneurial) income. The measurement of its influence, however, suffers from endogeneity suspicion. For instance, ability and occupational choice are mentioned as driving both the level of (entrepreneurial) income and of education. Using instru-mental...

The validity of family background variables instrumenting education in income regressions has been much criticized. In this paper, we use data from the 2004 German Socio-Economic Panel and Bayesian analysis to analyze to what degree violations of the strict validity assumption affect the...

Bayesian methods constitute an alternative to null hypothesis significance testing (NHST). This article briefly reviews the concept of Bayesian methods, describes its differences with NHST, and discusses the potential of Bayesian methods to advance family business research and practice. We argue...