Ferrante, Francesco and Sabatini, Fabio (2007): Education, social capital and entrepreneurial selection in Italy.
Download (194Kb) | Preview
There is wide consensus that entrepreneurial talent is the ability to discover and exploit market opportunities by taking the relevant risky decisions. Discovery and exploitation are separate but interlinked features of entrepreneurship requiring, in different proportions, the exploitation of innate and acquired skills. Institutions and technology, by determining the nature of the discovery and exploitation process and the need for such skills, play an essential role in shaping the nature of entrepreneurial talent and the specific role of education in entrepreneurial selection and performance. Empirical studies on entrepreneurship do not offer a neat picture of the actual contribution of education to entrepreneurial human capital or entrepreneurial talent. This unsatisfactory outcome is not surprising and is due to an inadequate assessment of the context-dependent factors shaping the latter. Building on these premises, the aim of our research work is to carry out a in depth analysis of the determinants of entrepreneurship in Italy, thus accounting for the role that variables like the educational qualification, the family background, and social capital play in determining the entrepreneurial selection. This paper attempts to constitute a first step for the improvement of our understanding by means of a preliminary, exploratory, analysis on the Italian data and a series of probit analyses aimed at identifying the main determinants founding the entrepreneurial choice. Rough data are taken from an original dataset built by the authors partly drawing on the Survey of Household Income and Wealth (SHIW) carried out by the Bank of Italy. The latter has been integrated with a wide variety of environmental variables drawn from different data sources describing the social and institutional context of the entrepreneurial activity.
|Item Type:||MPRA Paper|
|Institution:||University of Cassino|
|Original Title:||Education, social capital and entrepreneurial selection in Italy|
|Keywords:||Education; Work status; Employment; Self-employment; Entrepreneurship; Human capital; Social capital; Cognitive abilities|
|Subjects:||I - Health, Education, and Welfare > I2 - Education and Research Insititutions > I21 - Analysis of Education
M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M13 - New Firms; Startups
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J23 - Labor Demand
I - Health, Education, and Welfare > I2 - Education and Research Insititutions
Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z13 - Economic Sociology; Economic Anthropology; Social and Economic Stratification
|Depositing User:||Fabio Sabatini|
|Date Deposited:||30. Mar 2007|
|Last Modified:||17. Feb 2013 18:49|
Arrighetti A., Lasagni A. e Seravalli G. (2003), “Capitale sociale, associazionismo economico e istituzioni: indicatori statistici di sintesi”, in Rivista di Politica Economica, Vol. VII-VIII, July-August, 2003. Banerjee, A.V. and Newman A.F. (1993), Occupational Choice and the Process of Development, Journal of Political Economy 101(2), 274-298. Barca F. e Cannari L. (1997), Imprenditori ed investitori: ruolo dell’istruzione, in N. Rossi (a cura di), L’istruzione in Italia solo un pezzo di carta?, Il Mulino, Bologna. Bates, T. (1990), “Entrepreneur Human Capital Inputs and Small Business Longevity”, Review of Economics and Statistics”, 72(4), 551-559. Baumol W.J. (1968), Entrepreneurship in Economic Theory, American Economic Review, vol. 58(2), 64-71. Baumol W.J. (1990), Entrepreneurship: Productive, Unproductive, and Destructive, Journal of Political Economy, vol. 98(5), 893-921. Baumol W..J. (2004), Education for innovation: entrepreneurial breakthrough vs. incremental corporate innovation, NBER WP n.10578. Brockhaus R (1982), “The psychology of an entrepreneur”, in: Kent, C, Sexton D, Vesper K (eds) Encyclopedia of entrepreneurship, Englewood Cli.s, NJ, Prentice Hall, pp 39–56. Cantillon, R. (1775), Essai sur la nature du commerce en general, version edited by T.Tsuda (1979), Kinokuya, Tokyo. Cohen W.M. and Levinthal D.A. (1989), Innovation and Learning: the Two Faces of R&D, The Economic Journal 99, 569-96. Conway P., Janod V. and Nicoletti G. (2005), Product Market Regulation in OECD Countries, 1998 to 2003, OECD Economics Department W.P. n. 419. Cowling M. (2000), “Are entrepreneurs different across countries”, Applied Economics Letters, 7, 785-789. Cramer J.S., Hartog J., Jonker N., Praag C.M. van (2002), “Low risk aversion encourages the choice for entrepreneurship: an empirical test of a truism”, Journal of Economic Behavior and Organization, Vol. 48, N. 1, May 2002, pp. 29-36(8). Davidsson P. and Honig B. (2003), The Role of Social and Human Capital among Nascent Entrepreneurs, Journal of Business Venturing 18(3), 3001-331. Djankov S., La Porta R., Lopez-De-Silanes F. and Shleifer A. (2002), The Regulation of Entry, The Quarterly Journal of Economics, MIT Press, vol. 117(1), 1-37. Evans D.S. and Jovanovic B.. (1989), An Estimated Model of Entrepreneurial Choice Under Liquidity Constraint, Journal of Political Economy, 97(4), 808-827. Fafchamps, M. and Minten, B. (2002), “Returns to Social Network Capital Among Traders”, Oxford Economic Papers, 54: 173-206, April 2002. Fafchamps, M., Gabre-Madhin, E. and Minten, B. (2005), “Increasing Returns and Market Efficiency in Agricultural Trade”, Journal of Development Economics, 78(2): 406-42, December 2005. Ferrante F. (2005), Revealing Entrepreneurial Talent, Small Business Economics 6, September 159-174. Federici D. e Ferrante F. (2005), Qualità del sistema imprenditoriale e riposizionamento competitivo dei distretti del tessile-abbigliamento, in Rapporto ICE 2005. Guiso L. and Schivardi F. (2005), Learning to be an Entrepreneur, CEPR Discussion Paper n. 5290. Istat (2005), Le organizzazioni di volontariato in Italia. Anno 2001, Roma, Istat. Istat (2006), Le cooperative sociali in Italia. Anno 2001, Roma, Istat. Iyigun, M.F. and Owen A.L. (1998), Risk, Entrepreneurship and Human-Capital Accumulation, American Economic Review 88(2), 454-457. Iyigun, M.F. and Owen A.L. (1999), Entrepreneurs, Professionals, and Growth, Journal of Economic Growth 4, June, 213-232. Kanbur S.M. (1979), Of Risk Taking and the Personal Distribution of Income, Journal of Political Economy, 87(4), 769-797. Kihlstrom R.E. and Laffont J.J. (1979), A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion, Journal of Political Economy, 87(4), 719-748. Kirzner, I.M. (1973), Competition and Entrepreneurship, University of Chicago Press, Chicago. Knight, F. H. (1965), Risk, Uncertainty and Profits, New York, Harper and Row. Klapper L. , Laeven L. and Rajan R. (2004), “Barriers to Entrepreneurship”, WP. Kuncel K.N, Hezlett, S.A and Ones D.S. (2004) “Academic Performance, Career Potential, Creativity, and Job Performance: Can One Construct Predict Them All?” Journal of Personality and Social Psychology, Vol. 86, No. 1, 148–161. Legambiente (2005a), Rapporto Ecosistema Urbano 2005, Roma, Legambiente. Legambiente (2005b), Rapporto Ecosistema Scuola 2005, Roma, Legambiente. Leonardi, R. (1995), “Regional Development in Italy: Social Capital and the Mezzogiorno”, Oxford Review of Economic Policy, Vol. 11 (1995), Issue 2, 165-179 Loasby B. (2006),” A Cognitive Perspective on Entrepreneurship and the Firm ”, RIDE WP, forthcoming in Journal of Managerial Studies. Lucas, R.E. (1978), On the Size Distribution of Business Firms” Bell Journal of Economics 9, Autumn, 508-523. Lucas, R.E. (1988), On the Mechanics of Economic Development” Journal of Monetary Economics 22(1), 3-42. Lunaria (2004), La finanziaria per noi. Come usare i soldi pubblici per diritti, pace, ambiente, Roma, Editrice Berti. Lunaria (2006), Come si vive in Italia?, Roma, Editrice Berti. Masters, R and Meier, R. (1988), “Sex Differences and Risk-Taking Propensity of Entrepreneurs”, Journal of Small Business Management 26(1): 31-35. Miner, J.B. and Raju, N.S. (2004), “Risk propensity differences between managers and entrepreneurs and between low- and high-growth entrepreneurs: a reply in a more conservative vein”, Journal of Applied Psychology, 89(1):14-21. Murphy, K.M., Shleifer A. and Vishny R. (1991), “he Allocation of Talent: Implications for Growth, Quarterly Journal of Economics 106(2), 503-530. Nelson, R., and Phelps, E. (1966), Investment in Humans, Technological Diffusion and Economic Growth, American Economic Review 61, 69-75. Otani, K. (1996), A Human Capital Approach to Entrepreneurial Capacity, Economica, 63, 273-289. Putnam, R.D., (1994), “Tuning In, Tuning Out: The Strange Disappearance of Social Capital in America”, PS Online: American Political Science Association's Journal of the Profession. Redding, S. (1996), Low-Skill, Low-Quality Trap: Strategic Complementarities between Human Capital and R&D, Economic Journal 106, 458-470. Sabatini, F. (2005), “Social Capital as Social Networks: a New Framework for Measurement”, Working Paper No. 83, University of Rome La Sapienza, Department of Public Economics. Sabatini, F. (2006a), “Social Capital, Public Spending and the Quality of Economic Development: the Case of Italy”, FEEM Working Paper 14.06, Eni Enrico Mattei Foundation, Milan. Sarasvathy D.K., Simon H.A, and Lave, L. (1998), “Perceiving and managing business risks: differences between entrepreneurs and bankers”, Journal of Economic Behavior and Organization, Vol. 33, N. 2, January 1998, pp. 207-225(19). Scarpetta, S., Hemmings P., Tressel T. and Woo J. (2002), The Role of Policy and Institutions for Productivity and Firm Dynamics: Evidence from Micro and Industry Data, OECD W.P. n. 329. Schiller, B.R. and Crewson, P. (1997), Entrepreneurial Origins: a Longitudinal Inquiry, Economic Inquiry XXXV, 523-531. Schumpeter, J.A. (1936), The Theory of Economic Development, Cambridge, Mass. Schultz, T.W. (1990), Restoring Economic Equilibrium: Human Capital in the Modernizing Economy, Basil Blackwell, Cambridge, Mass. Sen A. (1992), Inequality Reexamined, Oxford University Press, Oxford, trad. (1994) La diseguaglianza, Il Mulino, Bologna. Storey D.J. (1994), Understanding the Small Business Sector, London: Routledge. Val Praag C.M. and Cramer J.S. (2001), The Roots of Entrepreneurial and Labour Demand: Individual Ability and Low Risk Aversion, Economica, February, 45-62. Van der Sluis Van Praag Mirjam, Vijverberg W. (2003), “Entrepreneurial selection and performance. A meta-analysis of the impact of education in Developed Countries”, Tinbergen Institute Discussion Papers 2003-046/3. Van der Sluis J. and Van Praag C. Mirjam (2004), “Economic Returns to Education for Entrepreneurs: The Development of a Neglected Child in the Family of Economics of Education”, WP presentato in occasione della conferenza “Self-employment and Entrepreneurship”, Stoccolma. Van der Sluis J,, Van Praag Mirjam and Vijverberg W. (2005), “Entrepreneurial selection and performance. A meta-analysis of the impact of education in Industrialized Countries”, World Bank Economic Review, 19, 2, 225-261. Vandenbussche J., Aghion P. and Meghir C. (2005), Growth, Distance to Frontier and Composition of Human Capital, CEPR W.P. 4860. Yli-Renko, H., Autio, E. and Tontti, V. (2000), “Social capital, knowledge and the international growth of technology-based new firms”, Working Paper No. 2000/4, Helsinki University of Technology, Institute of Strategy and International Business.