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Saved by the bell? The effects of compulsory schooling laws on self-employment and earnings in Australia

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  • Pankaj C. Patel

    (Villanova School of Business, Villanova University)

Abstract

Extending the research on secondary education and entrepreneurship, we ask whether compulsory schooling laws influence selection into and earnings from self-employment. We exploit the increase in the minimum school-leaving age from 14 to 15 in the mid-1960s in Victoria and South Australia. The findings show that for both males and females, likelihood and income from self-employment declined. The additional year of schooling did not influence self-employment through cognitive abilities, locus of control, well-being outcomes, or Big-Five personality dimensions.

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  • Pankaj C. Patel, 2024. "Saved by the bell? The effects of compulsory schooling laws on self-employment and earnings in Australia," Journal of Evolutionary Economics, Springer, vol. 34(1), pages 227-296, January.
    • Handle: RePEc:spr:joevec:v:34:y:2024:i:1:d:10.1007_s00191-023-00846-2
    DOI: 10.1007/s00191-023-00846-2
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    More about this item

    Keywords

    Self-employment; Compulsory education law; Earnings;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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