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School competition and students’ entrepreneurial intentions: international evidence using historical Catholic roots of private schooling

  • Oliver Falck


  • Ludger Woessmann


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. Copyright Springer Science+Business Media, LLC. 2013

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Article provided by Springer in its journal Small Business Economics.

Volume (Year): 40 (2013)
Issue (Month): 2 (February)
Pages: 459-478

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Handle: RePEc:kap:sbusec:v:40:y:2013:i:2:p:459-478
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