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Steve Jobs or No Jobs? Entrepreneurial activity and performance among Danish college dropouts and graduates

Author

Listed:
  • Guido Buenstorf

    (University of Kassel)

  • Kristian Nielsen

    (Aalborg University)

  • Bram Timmermans

    (Norwegian School of Economics)

Abstract

Are college dropouts successful entrepreneurs? Other than anecdotal evidence on illustrious college dropouts who managed to become self-made billionaires, there is only limited empirical evidence to answer this question. This paper addresses this issue by investigating the relationship between college dropout or graduation and entrepreneurship activity as well as performance. Using information from the Danish labor market register, we identify college students, whether these students graduate, and if they registered a new venture. We find that a larger share of dropouts starts a business, but this reflects the endogeneity of the decision to exit from college. On average, becoming an entrepreneur does not allow dropouts to escape from their punishment in the labor market.

Suggested Citation

  • Guido Buenstorf & Kristian Nielsen & Bram Timmermans, 2016. "Steve Jobs or No Jobs? Entrepreneurial activity and performance among Danish college dropouts and graduates," MAGKS Papers on Economics 201628, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201628
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    More about this item

    Keywords

    entrepreneurship; higher education; college dropouts; returns to entrepreneurship;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • I29 - Health, Education, and Welfare - - Education - - - Other

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