.357 Magnum is able to achieve higher veolcities and use heavier bullets without exceeding the pressures of the 9mm because of is larger case capacity. In a nut shell, it takes more of the same powder to reach a given pressure in a large case than it does in a small one.
With regards to power when the cartridges are compared for self-defense, the .357 Magnum undoubtedly has more power.
If we look at true top end loadings for both from Double Tap, we find that from a 4" Ruger GP100, the 125grn .357 Magnum loading bests the 124grn +P 9mm from a Glock 17 by 290fps. Even when fired from a 1 7/8" barrel Snubby, the .357 Magnum still bests the G17's 9mm velocities by 115fps. Both of these loadings are marketed by Double Tap as self defense loadings (125grn is typically considered to be a bit light for hunting).
http://www.doubletapammo.com/php/catalog/product_info.php?cPath=21_27&products_id=48
http://www.doubletapammo.com/php/catalog/product_info.php?cPath=21_37&products_id=120
Likewise, the ballistic advantage of the .357 Magnum remains just as apparent when heavy bullets are factored into the equation. Double Tap's 158grn .357 Magnum load from a 4" GP100 bests their 147grn +P 9mm load from a G17 by 265fps and does it with a bullet 9grn heavier. Even when fired from a snubby, the 158grn .357 is still 110fps faster than the 147grn 9mm.
http://www.doubletapammo.com/php/catalog/product_info.php?cPath=21_27&products_id=49
http://www.doubletapammo.com/php/catalog/product_info.php?cPath=21_37&products_id=121
If we look outside of Double Tap's loadings and examine those of the more "mainstream" manufacturers, we still see that the .357 Magnum has a distinct ballistic advantage. For example, Winchester's 125grn .357 Magnum loading is listed at 1450fps from an unlisted barrel lenght while their 127grn +P+ Ranger loading is listed at 1250fps from an unlisted barrel length (I assume 4" barrels in most cases as that's the length than most other manufacturers list similar loadings with similar velocities from). This gives the .357 Magnum a 200fps advantage.
http://www.winchester.com/products/catalog/handgundetail.aspx?symbol=X3576P&cart=MzU3IE1hZ251bQ==
http://www.winchester.com/lawenforcement/catalog/handgundetail.aspx?symbol=RA9TA&cart=OW1tIEx1Z2VyIFA=
When we compare the heavier bullets, we see that Winchester's 145grn .357 Magnum Silvertips best both the 147grn 9mm Silvertips, the 147grn 9mm Supreme T-Series, and the 147grn Rangers by 280fps, 300fps, and 300fps respectively. Winchester lists all of these velocities from 4" barrels.
http://www.winchester.com/products/catalog/handgundetail.aspx?symbol=X357SHP&cart=MzU3IE1hZ251bQ==
http://www.winchester.com/products/catalog/handgundetail.aspx?symbol=S9&cart=OW1tIEx1Z2Vy
http://www.winchester.com/lawenforcement/catalog/handgundetail.aspx?symbol=RA9T&cart=OW1tIEx1Z2Vy
Finally, much is made of the difference in measuring barrels between semi-automatics and revolvers. It is often claimed that if the barrels were measured the same way, the 9mm would match or exceed the velocities of the .357 Magnum. However, a look at Ballistics by the inch's website proves this to be untrue as all velocities are taken from T/C Encore barrels measured in the same manner as those of semi-automatics. If we discount the 2" barrel velocity (this would be approximately a 3/4" barrel on a revolver) since few if any guns in these two calibers have barrels that short, we find the .357 Magnum outperforms the 9mm in every load at every barrel length except the Cor-Bon 110grn .357 JHP which is slightly outperformed by the Cor-Bon 115grn 9mm +P JHP in 4" and shorter barrels.