scholarly journals Do elite colleges matter? The impact on entrepreneurship decisions and career dynamics

2021 ◽  
Vol 12 (4) ◽  
pp. 1347-1397 ◽  
Author(s):  
Naijia Guo ◽  
Charles Ka Yui Leung
Keyword(s):  
Human Capital ◽  
Intergenerational Mobility ◽  
College Attendance ◽  
Self Employment ◽  
Family Wealth ◽  
Start Up ◽  
Elite College ◽  
Elite Colleges ◽  
Education Subsidy ◽  
The Impact

Elite college attendance significantly impacts students' entrepreneurship decisions and career dynamics. We find that an elite college degree is positively correlated with entrepreneurship (i.e., owning an incorporated business) but not with other self‐employment forms. Our overlapping generations model captures self‐selection in education and career choices based on heterogeneous ability and family wealth endowments over the life cycle. Our estimates show that (1) entrepreneurs and other self‐employed individuals require different types of human capital, and (2) elite colleges generate considerably more human capital gain than ordinary colleges, particularly for entrepreneurs. Distinguishing between elite and ordinary colleges improves our prediction of entrepreneurship decisions. Providing subsidies for elite colleges is more efficient than subsidizing their ordinary counterparts to encourage entrepreneurship, enhance intergenerational mobility, and enhance welfare. In contrast, although start‐up subsidy increases entrepreneurship, it does not improve their performance, and it is inferior to education subsidy in generating efficiency, equality, and intergenerational mobility.

Intergenerational Mobility and Unequal School Opportunity

2020 ◽  
Author(s):  
Andreu Arenas ◽  
Jean Hindriks
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Intergenerational Mobility ◽  
Assortative Matching ◽  
Human Capital Accumulation ◽  
Positive Effects ◽  
Intergenerational Income Mobility ◽  
The Usa ◽  
Income Dispersion ◽  
The Impact

Abstract We analyse the impact of unequal school opportunity on intergenerational income mobility and human capital accumulation. Building upon the classical Becker–Tomes–Solon framework, we use a regime-switch model allowing for differences in income transmission across groups. We find that unequal school opportunity raises average human capital because of assortative matching. However, because income dispersion tends to be higher at the top, in most cases unequal school opportunity decreases intergenerational mobility. Calibrating the model to the USA, simulations suggest that school equalisation and desegregation policies have positive effects on mobility at relatively small efficiency costs.

Generating Skilled Self-Employment in Developing Countries: Experimental Evidence from Uganda *

2013 ◽  
Vol 129 (2) ◽  
pp. 697-752 ◽  
Author(s):  
Christopher Blattman ◽  
Nathan Fiala ◽  
Sebastian Martinez
Keyword(s):  
Vocational Training ◽  
Skills Training ◽  
Control Group ◽  
Social Stability ◽  
Treatment Groups ◽  
Self Employment ◽  
Start Up ◽  
Starting Point ◽  
Grant Proposals ◽  
The Impact

Abstract We study a government program in Uganda designed to help the poor and unemployed become self-employed artisans, increase incomes, and thus promote social stability. Young adults in Uganda’s conflict-affected north were invited to form groups and submit grant proposals for vocational training and business start-up. Funding was randomly assigned among screened and eligible groups. Treatment groups received unsupervised grants of $382 per member. Grant recipients invest some in skills training but most in tools and materials. After four years, half practice a skilled trade. Relative to the control group, the program increases business assets by 57%, work hours by 17%, and earnings by 38%. Many also formalize their enterprises and hire labor. We see no effect, however, on social cohesion, antisocial behavior, or protest. Effects are similar by gender but are qualitatively different for women because they begin poorer (meaning the impact is larger relative to their starting point) and because women’s work and earnings stagnate without the program but take off with it. The patterns we observe are consistent with credit constraints.

Esperienza lavorativa dei fondatori e sopravvivenza delle giovani imprese high-tech in mercati in crisi

2009 ◽  
pp. 41-61
Author(s):  
Luca Grilli
Keyword(s):  
Human Capital ◽  
Work Experience ◽  
Firm Survival ◽  
Jel Classification ◽  
High Tech ◽  
Specific Work ◽  
Alternative Employment ◽  
Start Up ◽  
The One ◽  
The Impact

- This article adds new insights into the relationship between the founders' human capital and the survival prospects of start-up businesses. The impact of founders' human capital on firm survival is controversial. On the one hand, more experienced and skilled individuals are likely to create start-up businesses with a high chance of survival; on the other hand, their opportunity costs to run the firm may be high given the potential returns for investing their efforts in alternative employment opportunities. Analysing a sample of 179 Italian start-up companies created during 1995-early 2000 and operating in the ICT services markets, this study provides evidence that, in intense industry crises (early 2000-2003), highly work-experienced entrepreneurs may pursue an exit strategy, highlighting the importance of distinguishing between different types of work experience and different exit routes. In particular, founding teams with highly specific work experience show higher probability of following the M&A route, while a higher level of generic work experience is more conducive to closure. Keywords: high-tech entrepreneurship; young firm survival; founders' human capital Parole chiave: imprenditorialitŕ high-tech; sopravvivenza di giovani imprese; capitale umano degli imprenditori Jel Classification: L26 - L86

START-UP AND GROWTH OF IMMIGRANT SMALL BUSINESSES: THE IMPACT OF SOCIAL AND HUMAN CAPITAL

2006 ◽  
Vol 11 (04) ◽  
pp. 357-375 ◽  
Author(s):  
JENNIFER M. SEQUEIRA ◽  
ABDUL A. RASHEED
Keyword(s):  
Human Capital ◽  
Network Theory ◽  
Small Businesses ◽  
Weak Ties ◽  
Subsequent Growth ◽  
Strong Ties ◽  
Immigrant Entrepreneurs ◽  
Start Up ◽  
Successful Business ◽  
The Impact

Networks, and their resulting social capital, can be key determinants of successful business start-up for immigrant entrepreneurs. Historically, immigrants have settled in communities characterized by networks that consist of strong ties. Network theory suggests that in addition to strong ties, success also requires the development of weak ties. In this paper, we develop a model of the relationships between strong and weak ties, and the likelihood of a business start-up and its subsequent growth. We also specifically consider the moderating effect of the entrepreneur's human capital in these relationships. Based on this model, we derive a number of theoretical propositions.

An Evaluation of Business Start-Up Support for Young People

2003 ◽  
Vol 186 ◽  
pp. 59-72 ◽  
Author(s):  
Nigel Meager ◽  
Peter Bates ◽  
Marc Cowling
Keyword(s):  
Young People ◽  
Comparison Group ◽  
Market Outcomes ◽  
Business Survival ◽  
Self Employment ◽  
Start Up ◽  
Labour Market Outcomes ◽  
The Government ◽  
Matched Comparison ◽  
The Impact

The article describes some evaluation findings from a longitudinal study of young people receiving business start-up assistance, through the Prince's Trust (with financial support from the Government). Unusually for evaluations of self-employment schemes, it focuses not solely on issues of deadweight and business survival, but also looks at the impact of programme participation on the subsequent labour market outcomes of participants. It uses a matched comparison group methodology to model programme impact, and finds no statistical evidence that supported entry to self-employment has an impact on participants' subsequent ‘employability’. After controlling for other factors, those who leave the programme are no more likely than those in the comparison group to be in employment, and if in employment their earnings are no higher than those in the comparison group.

scholarly journals How Valuable is Experience? Examining the Impact of Founder Experience on Nonprofit Start-Up Success

2020 ◽  
Vol 6 (2) ◽  
pp. 233
Author(s):  
Fredrik O. Andersson
Keyword(s):  
Human Capital ◽  
Logistic Regression ◽  
Regression Analysis ◽  
Logistic Regression Analysis ◽  
Nonprofit Management ◽  
Previous Experience ◽  
Start Up ◽  
Management Experience ◽  
The Impact

Nonprofit entrepreneurs face a number of liabilities that are particularly significant during the emergent phase of a new nonprofit. Using a human capital perspective, this study examines the influence previous experience plays as it relates to nonprofit organizational start-up success. The study draws on a sample of 118 nascent nonprofit entrepreneurs. The results from a logistic regression analysis show no significant impact with regard to education or prior nonprofit management experience. The results, however, show that prior start-up experience significantly enhances the likelihood of start-up success.

scholarly journals Evaluation of Self-Employment Development Factors: Latvian Case

2015 ◽  
Vol 27 (1) ◽  
pp. 5-11
Author(s):  
Rita Remeikiene
Keyword(s):  
Institutional Environment ◽  
Expert Evaluation ◽  
Foreign Markets ◽  
Self Employment ◽  
Start Up ◽  
Increasing Demand ◽  
The Impact

Abstract The factors that have the impact on selfemployment development have been identified and ranked by importance applying method of expert evaluation. Selfemployment start-up is promoted by the increasing demand in foreign markets, export and lack of competences for all activities while the main barriers are unfavourable economics and institutional environment.

scholarly journals An Empirical Study for European Countries: Factors Affecting Economic Growth and Self-Employment by Gender

2020 ◽  
Vol 12 (22) ◽  
pp. 9450
Author(s):  
Víctor M. González-Sánchez ◽  
Antonio Martínez Raya ◽  
Susana de los Ríos-Sastre
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Public Expenditure ◽  
European Countries ◽  
Early School Leaving ◽  
Factors Affecting ◽  
Self Employment ◽  
Early School ◽  
The Impact ◽  
Positive Effect

In economic literature, the relationship between entrepreneurship and economic growth has been widely discussed for some time now. In addition to the different theoretical approaches, a considerable amount of empirical works in recent decades have sought to verify the direct link between both variables by analyzing datasets from several distinct geographic areas. On one hand, it highlights the absence of a common indicator to measure entrepreneurship in practice relating to a country’s economic growth; on the other hand, it shows a great diversity of factors determining them. With the aim of providing new empirical evidence in the field of European entrepreneurship, this paper has analyzed data relating to 31 European countries over the last decade by introducing self-employment as an empirical proxy of entrepreneurship. In particular, this study contrasts the positive effect of public expenditure, investment, human capital, and entrepreneurship on economic growth for a wide range of countries and examines the impact of some economic and educational variables on self-employment, such as unemployment, taxes, education, and early school leaving. The estimation method used in this research had to consider the Ordinary Least Squares through a multiple regression model of constant coefficients based on annual Eurostat statistics for the period of 2010 to 2019. The results obtained verify the positive effect of public expenditure, investment, human capital, and entrepreneurship on economic growth. Moreover, the analysis of other factors affecting entrepreneurship, segregated by gender, shows how unemployment and the level of education have a positive impact on self-employment, while significant increases in the tax rate on capital and early school leaving harmed such variable. No significant differences were found between males and females.

scholarly journals The Identification of the Impact of Bidirectional Self-employment Factors on Self-employment Start-up and Duration: Latvian Case

2014 ◽  
Vol 156 ◽  
pp. 268-273
Author(s):  
Rita Remeikienė ◽  
Grazina Startienė ◽  
Alina Stundžienė
Keyword(s):  
Self Employment ◽  
Employment Factors ◽  
Start Up ◽  
The Impact

scholarly journals Self–Employment, Wealth and Start–up Costs: Evidence from a Financial Crisis

2018 ◽  
Vol 18 (3) ◽  
Author(s):  
Koffi Elitcha ◽  
Raquel Fonseca
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
The United States ◽  
Individual Level ◽  
Self Employment ◽  
Start Up ◽  
Strong Positive Relationship ◽  
Negative Effect ◽  
The Impact

Abstract Using individual-level data from three uniquely comparable surveys (Survey of Health, Ageing and Retirement in Europe, English Longitudinal Study of Ageing and Health and Retirement Study) in Europe and the United States, as well as the World Bank’s Doing Business data, this paper empirically zeroes in on the impact of start-up costs on the self-employment–wealth relationship. The longitudinal nature of the data enables us to investigate the potential effects of the last global financial crisis. Results confirm the strong positive relationship between the entrepreneurial choice and wealth as well as the negative effect that stems from the increase in start-up costs. Interestingly, although there is no strong evidence that wealth in itself played a bigger role during the crisis, we find that the negative impact of start-up costs on the entrepreneurship–wealth relationship proved to be significantly pronounced during the last crisis.

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