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Returns to education among entrepreneurs in Bangladesh

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  • Kolstad, Ivar
  • Wiig, Arne
  • Moazzem, Khondaker Golam

Abstract

This article estimates returns to education among entrepreneurs in Bangladesh, using unique survey data from 2012. Our main instrument for education is the education of the father of the entrepreneur, and we control for sibling education in order to take out the potential effect of father education on productivity and profitability. The results suggest a return to education in the order of 11 per cent per year of education. Using the education of the mother as an alternative instrument, we find evidence of heterogeneous returns to education among entrepreneurs. Compared to our main instrument, the education of mothers appears to affect education choices among individuals with relatively higher participation probabilities in education, where returns to education are lower.

Suggested Citation

  • Kolstad, Ivar & Wiig, Arne & Moazzem, Khondaker Golam, 2014. "Returns to education among entrepreneurs in Bangladesh," Journal of Asian Economics, Elsevier, vol. 34(C), pages 54-65.
    • Handle: RePEc:eee:asieco:v:34:y:2014:i:c:p:54-65
    DOI: 10.1016/j.asieco.2014.07.001
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    Cited by:

    1. Alam, Khorshed & Mamun, Shamsul Arifeen Khan, 2016. "The relationship between labour force status and educational attainment: Evidence from a system of simultaneous equations model," Economic Analysis and Policy, Elsevier, vol. 52(C), pages 55-65.
    2. Ivar Kolstad & Arne Wiig, 2015. "Education and entrepreneurial success," Small Business Economics, Springer, vol. 44(4), pages 783-796, April.
    3. Mamun, Shamsul Arifeen Khan & Taylor, Brad R. & Nghiem, Son & Rahman, Mohammad Mafizur & Khanam, Rasheda, 2021. "The private returns to education in rural Bangladesh," International Journal of Educational Development, Elsevier, vol. 84(C).

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    More about this item

    Keywords

    Entrepreneurship; Returns to schooling; Endogeneity; Heterogeneity; Bangladesh;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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