Do more highly educated entrepreneurs matter?
Date
2013
Authors
Lin, F.
Huang, C.
He, X.
Huang, C.
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Journal article
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Asian-Pacific Economic Literature, 2013; 27(2):104-116
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Faqin Lin, Can Huang, Xiaobo He, and Chao Zhang
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Abstract
This paper uses a unique micro dataset of Chinese private firms surveyed in 2000 to investigate whether having a more highly educated entrepreneur affects a firm's performance. Identifying educational effects has been shown to be empirically challenging because it is difficult to overcome the likely omitted variable bias problem. We use the propensity score matching method to get around this identification problem. Matching results imply that on average, the firms whose owners received higher education had 5.2-5.8 percentage points higher return on equity, 115-126 percentage points higher profits, and 102-111 percentage points higher sales revenue, respectively, than firms that did not have higher educated entrepreneurs. © 2013 Crawford School of Public Policy, The Australian National University and Wiley Publishing Asia Pty Ltd.
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© 2013 Crawford School of Public Policy, The Australian National University and Wiley Publishing Asia Pty Ltd