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Education and Self-employment Propensity

  • 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))

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.

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Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 345.

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Length: 26 pages
Date of creation: 12 Mar 2014
Date of revision:
Handle: RePEc:hhs:cesisp:0345
Contact details of provider: Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/

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  1. Stuetzer, Michael & Obschonka, Martin & Schmitt-Rodermund, Eva, 2012. "Balanced skills among nascent entrepreneurs," MPRA Paper 37524, University Library of Munich, Germany.
  2. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
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  4. Mika Haapanen & Hannu Tervo, 2009. "Self-employment duration in urban and rural locations," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2449-2461.
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  6. Andersson, Martin & Klaesson , Johan & Larsson , Johan P, 2014. "The Sources of the Urban Wage Premium by Worker Skills," Papers in Innovation Studies 2014/6, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
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  8. Zoltan Acs, 2006. "How Is Entrepreneurship Good for Economic Growth?," Innovations: Technology, Governance, Globalization, MIT Press, vol. 1(1), pages 97-107, March.
  9. Hans Westlund & Johan P. Larsson & Amy Olsson, 2012. "Startups and Local Social Capital in the Municipalities of Sweden," ERSA conference papers ersa12p91, European Regional Science Association.
  10. Blanchflower, David G & Meyer, Bruce D, 1994. " A Longitudinal Analysis of the Young Self-Employed in Australia and the United States," Small Business Economics, Springer, vol. 6(1), pages 1-19, February.
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  12. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
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