Economics at your fingertips  

Exploring the U-shaped relationship between education and entrepreneurial choice: a theoretical model and empirical findings for Latin America

Monserrat Serio () and Pablo Mahnic ()
Additional contact information
Monserrat Serio: Universidad Nacional de Cuyo
Pablo Mahnic: Universidad Nacional de Cuyo

SN Business & Economics, 2022, vol. 2, issue 6, 1-22

Abstract: Abstract This paper explores the relationship between entrepreneurship and education. We explore whether more educated or less educated people are more likely to become entrepreneurs. To respond to this, we proposed a model of entrepreneurial choice considering the individual’s ability and preference for risk. Our model sheds light on the empirical fact that this relationship is U-shaped; i.e., people with low or high levels of education are more likely to be entrepreneurs than people with intermediate levels of education. Our model also allows us to explain that some individuals would always choose to be self-employed no matter the risk involved in entrepreneurship. We also provide evidence for Latin America using the Banco de Desarrollo de América Latina (CAF) entrepreneur’s database. We perform an instrumental variable approach, and we find that this U-shape is only visible for a type of entrepreneur known as an opportunity entrepreneur. This result suggests the type of entrepreneur is an important characteristic to be included in our model in the future.

Keywords: Entrepreneurship; Education; Risk; Latin America (search for similar items in EconPapers)
JEL-codes: I25 J24 L26 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1007/s43546-022-00212-7

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2022-07-09
Handle: RePEc:spr:snbeco:v:2:y:2022:i:6:d:10.1007_s43546-022-00212-7