SMU SOE Seminar (Sep 19, 2018): What Makes a Successful Entrepreneur? The Effects of Elite Colleges and Intergenerational Transfers

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TOPIC:

WHAT MAKES A SUCCESSFUL ENTREPRENEUR? THE EFFECTS OF ELITE COLLEGES AND INTERGENERATIONAL TRANSFERS

ABSTRACT This paper studies the effect of elite colleges and intergenerational transfers on entrepreneurial entrance and performance. The data from the Panel Study of Income Dynamics exhibits a positive relationship between elite college enrollment and successful entrepreneurship (owning an incorporated business). We then build a life-cycle model with different education choices and career paths, together with intergenerational ability and monetary transfers. Our estimation shows that entrepreneur premium is positive, and the premium of incorporated business owners is higher than that of unincorporated business owners. The elite college premium is negative, suggesting that the consumption value of elite college plays an important role. Compared with non-elite colleges, elite colleges have a comparative advantage in enhancing entrepreneur human capital, but not worker human capital. Our counterfactual experiments suggest that elite college leads to more successful entrepreneurs, and intergenerational transfer reduces the numbers of elite college students and successful entrepreneurs. Keywords: Entrepreneurship, Elite college, Intergenerational transfer JEL Codes: D15, I20, J24 Click here to view the paper. Click here to view the CV.
		PRESENTER Naijia Guo Chinese University of Hong Kong
		RESEARCH FIELDS Labor Economics Family Economics Economics of Education Health Economics
		DATE: 19 September 2018 (Wednesday)
		TIME: 4pm - 5.30pm
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903

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