Abstract
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.
| Original language | English |
|---|---|
| Pages (from-to) | 225-261 |
| Number of pages | 37 |
| Journal | World Bank Economic Review |
| Volume | 19 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 5 Dec 2005 |
| Externally published | Yes |
Funding
Justin van der Sluis is a Ph.D. student at the University of Amsterdam and the Tinbergen Institute; his email address is [email protected]. Mirjam van Praag is professor of entrepreneurship at the University of Amsterdam and research fellow at the Tinbergen Institute; her email address is [email protected]. Wim Vijverberg is professor of economics and political economy at the University of Texas, Dallas, and research fellow at the Institute for the Study of Labor (IZA); his email address is [email protected]. The authors gratefully acknowledge the financial support of the World Bank and comments from the editor and anonymous referees.