Enrolment in education and entrepreneurship in Latin America: a multi-country study
by Alfredo Jimenez; Rafael Fabricio Matos; Carmen Palmero-Cámara; David Ragland
European J. of International Management (EJIM), Vol. 11, No. 3, 2017

Abstract: This paper studies the role of enrolment rates at different educational levels on entrepreneurship in Latin America. We analyse a sample of nine countries in the region from 2000 to 2007 using panel data techniques. Our results show that the creation of new firms increases when enrolment rates in secondary education are higher as a consequence of higher qualifications that lead to better evaluation and exploitation of business opportunities. Conversely, the creation of new firms is lower when enrolment rates in higher education are greater. This situation is a consequence of the signal that higher education transmits to the labour market, which reduces informational asymmetry and perceptions of adverse selection and, therefore, increases employers' trust.

Online publication date: Tue, 25-Apr-2017

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