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School Competition and Students' Entrepreneurial Intentions: International Evidence Using Historical Catholic Roots of Private Schooling

  • Falck, Oliver

    ()

    (Ifo Institute for Economic Research)

  • Woessmann, Ludger

    ()

    (Ifo Institute for Economic Research)

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. We exploit Catholic-Church resistance to state schooling in 19th century as a natural experiment to obtain exogenous variation in current private-school shares. Our instrumental-variable results suggest that a 10 percentage-point higher private-school share raises students' entrepreneurial intentions by 0.3-0.5 percentage points (11-18 percent of the international mean) even after controlling for current Catholic shares, students' academic skills, and parents' entrepreneurial occupation.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5024.

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Length: 32 pages
Date of creation: Jun 2010
Date of revision:
Publication status: published in: Small Business Economics, 2013, 40 (2), 459-478
Handle: RePEc:iza:izadps:dp5024
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