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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.

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  • 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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    Cited by:

    1. Martin Schlotter, 2011. "Age at Preschool Entrance and Noncognitive Skills before School - An Instrumental Variable Approach," ifo Working Paper Series 112, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Zara Daghbashyan & Björn Hårsman, 2014. "University choice and entrepreneurship," Small Business Economics, Springer, vol. 42(4), pages 729-746, April.
    3. Ahmad Isa Abdullahi & Fakhrul Anwar Zainol, 2016. "The Impact of Socio-cultural Business Environment on Entrepreneurial Intention: A Conceptual Approach," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(2), pages 80-94, February.
    4. Elke Lüdemann, 2011. "Schooling and the Formation of Cognitive and Non-cognitive Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39, November.
    5. Martin Schlotter, 2012. "Educational Production in Preschools and Schools - Microeconometric Evidence from Germany," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 41, November.
    6. Chen, Yu-Fu & Funke, Michael, 2010. "Global Warming And Extreme Events: Rethinking The Timing And Intensity Of Environmental Policy," SIRE Discussion Papers 2010-48, Scottish Institute for Research in Economics (SIRE).
    7. Hanushek, Eric A. & Woessmann, Ludger, 2011. "The Economics of International Differences in Educational Achievement," Handbook of the Economics of Education, Elsevier.
    8. Oliver Falck & Robert Gold & Stephan Heblich, 2017. "Lifting the iron curtain: school-age education and entrepreneurial intentions," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1111-1148.
    9. Francesco Campanella & Maria Della Peruta & Manlio Del Giudice, 2013. "The Role of Sociocultural Background on the Characteristics and the Financing of Youth Entrepreneurship. An Exploratory Study of University Graduates in Italy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(3), pages 244-259, September.
    10. Oliver Falck & Anita Fichtl, 2013. "Die Herausbildung von Unternehmertum," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(06), pages 38-42, March.
    11. Cordero, José Manuel & Cristobal, Victor & Santín, Daniel, 2017. "Causal Inference on Education Policies: A Survey of Empirical Studies Using PISA, TIMSS and PIRLS," MPRA Paper 76295, University Library of Munich, Germany.
    12. Magnus Hoppe, 2016. "Policy and entrepreneurship education," Small Business Economics, Springer, vol. 46(1), pages 13-29, January.
    13. Ludger Wößmann, 2011. "Wettbewerb durch öffentliche Finanzierung von Schulen in freier Trägerschaft als wichtiger Ansatzpunkt zur Verbesserung des Schulsystems," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(01), pages 09-18, January.
    14. Ludger Wößmann, 2011. "Die Bedeutung von Bildung für die Wirtschaftsentwicklung: Eine neue wirtschaftshistorische Forschungsagenda anhand preußischer Kreisdaten, Teil 2," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(01), pages 41-47, January.
    15. Oliver Falck & Stephan Heblich & Elke Luedemann, 2012. "Identity and entrepreneurship: do school peers shape entrepreneurial intentions?," Small Business Economics, Springer, vol. 39(1), pages 39-59, July.
    16. Magnus Hoppe, 2016. "Policy and entrepreneurship education," Small Business Economics, Springer, vol. 46(1), pages 13-29, January.
    17. Gabriel Heller Sahlgren, 2014. "Handing Over the School Keys: The Impact of Privatisation on Education Quality," Economic Affairs, Wiley Blackwell, vol. 34(2), pages 196-210, June.

    More about this item

    JEL classification:

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

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