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

Listed author(s):
  • Falck, Oliver
  • Wößmann, Ludger

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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Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 20629.

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Date of creation: 2013
Publication status: Published in Small Business Economics 2 40(2013): pp. 459-478
Handle: RePEc:lmu:muenar:20629
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