Cities Lacking Entrepreneurs——An Empirical Evidence of Chinese Education Not Enhancing Entrepreneurship
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| Title | Cities Lacking Entrepreneurs——An Empirical Evidence of Chinese Education Not Enhancing Entrepreneurship
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| Author | Lu Ming and Ni Pengtu |
| Organization | Shanghai Jiaotong University |
| Email | lumingfd@gmail.com；nipengtu8@163.com |
| Key Words | Entrepreneurship; City-level Education; Labor Market; |
| Abstract | Based on the close relationship between urban development and entrepreneurship, this paper studies the effects that city-level education has on entrepreneurship using the samples of urban residents in 2005 national population census. We find the negative influence of individual education and city-level education on entrepreneurship. Considering the endogeneity of city-level education, we use the instrumental variable, the net number of departments moved in during the university relocation movement in the 1950s, to mitigate the estimation bias. The IV Probit estimation still presents the negative relation between city-level education and entrepreneurship. Furthermore, the heterogeneity analysis shows that migrants, female and less-experienced urban residents are more likely to be entrepreneurs in order to reduce the discrimination in the urban labor market comparing to local, male and experienced urban residents. Overall, human capital accumulation in urban areas has not fully prepared for entrepreneurship in China. |
| Serial Number | WP770 |
| Time | 2014-12-02 |
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