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School competition and students’ entrepreneurial intentions: International evidence using historical Catholic roots of private schooling

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  • Falck, Oliver
  • Wößmann, Ludger

Abstract

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, measured by their occupational desire to manage a small enterprise. We exploit Catholic-Church resistance to state schooling in the 19th century as a natural experiment to obtain exogenous variation in current private-school shares. Our instrumental-variable results suggest that a 10%-point higher private-school share raises students’ entrepreneurial intentions by 0. 3-0. 5% points (11-18% of the international mean) even after controlling for current Catholic shares, students’ academic skills, and parents’ entrepreneurial occupation.

Suggested Citation

  • Falck, Oliver & Wößmann, Ludger, 2013. "School competition and students’ entrepreneurial intentions: International evidence using historical Catholic roots of private schooling," Munich Reprints in Economics 20629, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:20629
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    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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