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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
  • Wößmann, Ludger

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, measured by their occupational desire to manage a small enterprise. We exploit Catholic-Church resistance to state schooling in the 19th century as a natural experiment to obtain exogenous variation in current private-school shares. Our instrumental-variable results suggest that a 10%-point higher private-school share raises students’ entrepreneurial intentions by 0. 3-0. 5% points (11-18% of the international mean) even after controlling for current Catholic shares, students’ academic skills, and parents’ entrepreneurial occupation.

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Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 20629.

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Date of creation: 2013
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Publication status: Published in Small Business Economics 2 40(2013): pp. 459-478
Handle: RePEc:lmu:muenar:20629

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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. 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.
  2. 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, July.
  3. 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).
  4. 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, July.
  5. Francesco Campanella & Maria Della Peruta & Manlio Del Giudice, 2013. "The Role of Sociocultural Background on the Characteristics and the Financing of Youth Entrepreneurship. An Exploratory Study of University Graduates in Italy," Journal of the Knowledge Economy, Springer, vol. 4(3), pages 244-259, September.
  6. Falck, Oliver & Heblich, Stephan & Lüdemann, Elke, 2012. "Identity and entrepreneurship: Do school peers shape entrepreneurial intentions?," Munich Reprints in Economics 20633, University of Munich, Department of Economics.
  7. Hanushek, Eric A. & Woessmann, Ludger, 2010. "The Economics of International Differences in Educational Achievement," IZA Discussion Papers 4925, Institute for the Study of Labor (IZA).
  8. 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.
  9. 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.
  10. 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.
  11. Oliver Falck & Anita Fichtl, 2013. "Die Herausbildung von Unternehmertum," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(06), pages 38-42, 03.

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