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Lifting the Iron Curtain: School-age Education and Entrepreneurial Intentions

Author

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  • Oliver Falck
  • Robert Gold
  • Stephan Heblich

Abstract

We exploit Germany’s reunification to identify how school-age education affects entrepreneurial intentions. We look at university students in reunified Germany who were born before the Iron Curtain fell. During school age, all students in the West German control group received formal and informal education in a free-market economy, while East German students did or did not receive free-market education. Difference-in-differences estimations show that school-age education in a free-market economy increases entrepreneurial intentions. An event study supports the common-trends assumption. Results remain robust in matched samples and when we exploit within-student variation in occupational intentions to control for unobserved individual characteristics.

Suggested Citation

  • Oliver Falck & Robert Gold & Stephan Heblich, 2015. "Lifting the Iron Curtain: School-age Education and Entrepreneurial Intentions," CESifo Working Paper Series 5540, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_5540
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    References listed on IDEAS

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    1. Oliver Falck & Ludger Woessmann, 2013. "School competition and students’ entrepreneurial intentions: international evidence using historical Catholic roots of private schooling," Small Business Economics, Springer, vol. 40(2), pages 459-478, February.
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    Cited by:

    1. Audretsch, David B. & Dohse, Dirk & dos Santos, João Pereira, 2017. "Do toll-free highways foster firm formation and employment growth? Results from a quasi-natural experiment," Kiel Working Papers 2080, Kiel Institute for the World Economy (IfW).
    2. Oliver Falck & Stefanie Gäbler, 2016. "Einfluss der Sozialisierung im Schulalter auf das Unternehmertum," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(04), pages 29-33, August.
    3. repec:ces:ifodre:v:24:y:2016:i:04:p:29-33 is not listed on IDEAS
    4. Viktor Slavtchev & Michael Wyrwich, 2017. "TV and Entrepreneurship," Jena Economic Research Papers 2017-007, Friedrich-Schiller-University Jena.

    More about this item

    Keywords

    entrepreneurship; socialism; formal education; informal education;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General

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