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Socioeconomic effects of collectivist and individualist education: A comparison between North and South Vietnam

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  • Hanna Adam

Abstract

This working paper analyses the socioeconomic effects of education in two different political systems by investigating whether individuals educated in a collectivist education system are less likely to become entrepreneurs than individuals educated in an individualist system. It exploits the separation of Vietnam into a communist northern and a capitalist southern part between 1954 and 1975 to identify education in the respective systems, keeping factors such as national culture or historical background fixed. A Probit regression using survey data on 1,164 individuals suggests that being educated in the North makes it 8.6 percent less likely to become an entrepreneur than being educated in the South. This demonstrates that education in different systems may have an effect on entrepreneurial activity, although challenges such as necessity-driven entrepreneurship remain unresolved.

Suggested Citation

  • Hanna Adam, 2020. "Socioeconomic effects of collectivist and individualist education: A comparison between North and South Vietnam," TVSEP Working Papers wp-020, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
  • Handle: RePEc:tvs:wpaper:wp-020
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    References listed on IDEAS

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    More about this item

    Keywords

    Entrepreneurship; Education; Vietnam; Survey data; Probit regression;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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