Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236341 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14310
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using the 2017 China Household Finance Survey (CHFS), we estimate the effect of higher education on entrepreneurship for prime-aged males. We distinguish between own-account workers and employers of small and large businesses, respectively, and use the higher education expansion in China starting in 1999 and instruments of pre-school hukou status to help identify causal effects. While our Inverse Probability Weighted Regression Adjustment estimates show that people with more education are less likely to enter entrepreneurship in general, obtaining any qualification beyond the baseline of compulsory schooling significant increases large business ownership later in life, with the maximum effect corresponding to a 3-fold increase found for university graduates. We attribute this effect to graduates taking full advantage of the opportunities presented by access to education earlier on in their lives.
Subjects: 
higher education
entrepreneurship
higher education expansion
China
Inverse Probability Weighted Regression Adjustment (IPWRA)
JEL: 
I25
J24
L26
Document Type: 
Working Paper

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