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Entrepreneurship Selection and Performance

Listed author(s):
  • Justin van der Sluis

    ()

    (Department of Economics, University of Amsterdam)

  • Mirjam van Praag

    ()

    (Department of Economics, University of Amsterdam)

  • Wim Vijverberg

    ()

    (University of Texas at Dallas, and IZA)

This meta-analytical review of empirical studies of the impact of schooling on entrepreneurship selection and performance in developing economies looks at variations in impact across specific characteristics of the studies. A marginal year of schooling in developing economies raises enterprise income by an average of 5.5 percent, which is close to the average return in industrial countries. The return varies, however, by gender, rural or urban residence, and the share of agriculture in the economy. Furthermore, more educated workers typically end up in wage employment and prefer nonfarm entrepreneurship to farming. The education effect that separates workers into self-employment and wage employment is stronger for women, possibly stronger in urban areas, and also stronger in the least developed economies, where agriculture is more dominant and literacy rates are lower. This paper has resulted in a publication in The World Bank Economic Review

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 03-046/3.

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Date of creation: 13 Jun 2003
Date of revision: 24 Sep 2004
Handle: RePEc:tin:wpaper:20030046
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  1. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
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  12. Ira N. Gang & Catherine Y. Co & Myeong-Su Yun, 2002. "Self-Employment and Wage Earning: Hungary During Transition," Departmental Working Papers 200219, Rutgers University, Department of Economics.
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