Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90782
Authors: 
Skogstrøm, Jens Fredrik Baumgarten
Year of Publication: 
2012
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 10/2012
Abstract: 
I present a theory on the relationship between educational choice and entrepreneurship in a labour market with asymmetric information. The model shows that, in a labour market where education is used as a signalling device, an imperfect relationship between productivity in education and in the labour market can lead to an equilibrium where a fraction of the high-ability individuals choose to quit school and become entrepreneurs. Using a comprehensive set of Norwegian register data, I find that this is prediction is confirmed empirically: Individuals combining low education with high ability have the highest entrepreneurship rates in the population.
Subjects: 
Entrepreneurship
self-employment
education
ability
JEL: 
L26
M13
J24
Document Type: 
Working Paper

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