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School Competition and Students' Entrepreneurial Intentions: International Evidence Using Historical Catholic Roots of Private Schooling

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  • Falck, Oliver

    () (Ifo Institute for Economic Research)

  • Woessmann, Ludger

    () (Ifo Institute for Economic Research)

Abstract

School choice research mostly focuses on academic outcomes. Policymakers increasingly view entrepreneurial traits as a non-cognitive outcome important for economic growth. We use international PISA-2006 student-level data to estimate the effect of private-school competition on students' entrepreneurial intentions. We exploit Catholic-Church resistance to state schooling in 19th century as a natural experiment to obtain exogenous variation in current private-school shares. Our instrumental-variable results suggest that a 10 percentage-point higher private-school share raises students' entrepreneurial intentions by 0.3-0.5 percentage points (11-18 percent of the international mean) even after controlling for current Catholic shares, students' academic skills, and parents' entrepreneurial occupation.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5024.

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Length: 32 pages
Date of creation: Jun 2010
Date of revision:
Publication status: forthcoming in: Small Business Economics
Handle: RePEc:iza:izadps:dp5024

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Keywords: Catholic schools; private school competition; entrepreneurship;

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References

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  1. C. Mirjam van Praag & Peter H. Versloot, 2007. "What is the Value of Entrepreneurship? A Review of Recent Research," Tinbergen Institute Discussion Papers 07-066/3, Tinbergen Institute.
  2. Minns, Chris & Rizov, Marian, 2005. "The spirit of capitalism? Ethnicity, religion, and self-employment in early 20th century Canada," Explorations in Economic History, Elsevier, vol. 42(2), pages 259-281, April.
  3. Woessmann, Ludger & West, Martin R., 2002. "Class-Size Effects in School Systems Around the World: Evidence from Between-Grade Variation in TIMSS," IZA Discussion Papers 485, Institute for the Study of Labor (IZA).
  4. Landes, David S., 1949. "French Entrepreneurship and Industrial Growth in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 9(01), pages 45-61, May.
  5. Wooldridge, Jeffrey M., 2001. "Asymptotic Properties Of Weighted M-Estimators For Standard Stratified Samples," Econometric Theory, Cambridge University Press, vol. 17(02), pages 451-470, April.
  6. Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May.
  7. Nicos Nicolaou & Scott Shane & Lynn Cherkas & Janice Hunkin & Tim D. Spector, 2008. "Is the Tendency to Engage in Entrepreneurship Genetic?," Management Science, INFORMS, vol. 54(1), pages 167-179, January.
  8. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521728355.
  9. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implicationsfor Growth," University of Chicago - George G. Stigler Center for Study of Economy and State 65, Chicago - Center for Study of Economy and State.
  10. Weber, Richard & Graevenitz, Georg von & Harhoff, Dietmar, 2009. "The Effects of Entrepreneurship Education," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 269, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  11. Helen F. Ladd, 2002. "School Vouchers: A Critical View," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 3-24, Fall.
  12. Jepsen, Christopher, 2002. "The role of aggregation in estimating the effects of private school competition on student achievement," Journal of Urban Economics, Elsevier, vol. 52(3), pages 477-500, November.
  13. Oosterbeek, Hessel & van Praag, Mirjam & Ijsselstein, Auke, 2010. "The impact of entrepreneurship education on entrepreneurship skills and motivation," European Economic Review, Elsevier, vol. 54(3), pages 442-454, April.
  14. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
  15. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
  16. C. Mirjam van Praag & Peter H. Versloot, 2007. "What is the Value of Entrepreneurship? A Review of Recent Research," Tinbergen Institute Discussion Papers 07-066/3, Tinbergen Institute.
  17. Sobel, Russell S. & King, Kerry A., 2008. "Does school choice increase the rate of youth entrepreneurship?," Economics of Education Review, Elsevier, vol. 27(4), pages 429-438, August.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. School Choice and Entrepreneurism
    by Ariel Goldring in Free Market Mojo on 2010-07-25 10:18:04
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Cited by:
  1. Martin Schlotter, 2011. "Age at Preschool Entrance and Noncognitive Skills before School - An Instrumental Variable Approach," Ifo Working Paper Series Ifo Working Paper No. 112, Ifo Institute for Economic Research at the University of Munich.
  2. Chen, Yu-Fu & Funke, Michael, 2010. "Global Warming And Extreme Events: Rethinking The Timing And Intensity Of Environmental Policy," SIRE Discussion Papers 2010-48, Scottish Institute for Research in Economics (SIRE).
  3. Ludger Wößmann, 2011. "Wettbewerb durch öffentliche Finanzierung von Schulen in freier Trägerschaft als wichtiger Ansatzpunkt zur Verbesserung des Schulsystems," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(01), pages 09-18, 01.
  4. Eric Hanushek & Ludger Woessmann, 2010. "The Economics of International Differences in Educational Achievement," Discussion Papers 09-013, Stanford Institute for Economic Policy Research.
  5. Elke Lüdemann, 2011. "Schooling and the Formation of Cognitive and Non-cognitive Outcomes," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 39, March.
  6. Martin Schlotter, 2012. "Educational Production in Preschools and Schools - Microeconometric Evidence from Germany," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 41, March.
  7. Ludger Wößmann, 2011. "Die Bedeutung von Bildung für die Wirtschaftsentwicklung: Eine neue wirtschaftshistorische Forschungsagenda anhand preußischer Kreisdaten, Teil 2," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(01), pages 41-47, 01.
  8. Daghbashyan, Zara & Hårsman, Björn, 2012. "University choice and entrepreneurship," Working Paper Series in Economics and Institutions of Innovation 292, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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