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Education and Self-employment Propensity

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  • Klaesson, Johan

    (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School (JIBS) and Centre of Excellence in Science and Innovation Studies (CESIS))

  • Larsson, Johan P

    (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School (JIBS) and Centre of Excellence in Science and Innovation Studies (CESIS))

Abstract

We examine the relationship between entrepreneurship and education length and field. Entrepreneurship and education are both used as policy vehicles for achieving employment and economic growth, regionally and nationally. If entrepreneurship in the form of new firms is the objective, then how will more education influence its achievability? We examine this question at the individual level using a full population data-set, and analyze the influence of education length and field on the propensity of leaving employment in 2007 for self-employment in 2008. The fields of education we investigate is: education, humanities and arts, social sciences, business and law and science. The effect of education on the probability of an individual turning from wage-employment into self-employment is positive overall, but differs considerably with respect to field of education on average and on the margin. The positive effects seem to almost exclusively come from the fields, science, social sciences and business and law. For the other fields the effect is essentially zero or even negative. In the empirics we control for a large set of variables controlling for individual, employer, and regional heterogeneity.

Suggested Citation

  • Klaesson, Johan & Larsson, Johan P, 2014. "Education and Self-employment Propensity," Working Paper Series in Economics and Institutions of Innovation 345, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0345
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    References listed on IDEAS

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    Cited by:

    1. Monserrat Serio & Pablo Mahnic, 2022. "Exploring the U-shaped relationship between education and entrepreneurial choice: a theoretical model and empirical findings for Latin America," SN Business & Economics, Springer, vol. 2(6), pages 1-22, June.
    2. Nazim Habibov & Elvin Afandi & Alex Cheung, 2017. "What is the effect of university education on chances to be self-employed in transitional countries?: Instrumental variable analysis of cross-sectional sample of 29 nations," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 487-500, June.
    3. Pablo Mahnic, 2021. "Emprendedurismo, capital humano y crecimiento económico," Asociación Argentina de Economía Política: Working Papers 4488, Asociación Argentina de Economía Política.

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    More about this item

    Keywords

    Self-employment; Entry; Human capital; Education; Industry; Region;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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