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Overeducation, natural amenities, and entrepreneurship

Author

Listed:
  • Tessa Conroy

    (University of Wisconsin-Madison)

  • Philip Watson

    (University of Idaho)

Abstract

This analysis examines how a local skills gap is related to entrepreneurial outcomes at the regional level in the USA. We develop a novel measure of a regional skills gap using education, comparing the educational attainment of the population with the education requirements of jobs in the region. We hypothesize that an educational mismatch, specifically overeducation, drives new establishment births. This positive effect of overeducation is even higher in high-amenity, non-metro counties, mainly in the Mountain West. To the extent that entrepreneurship generates broader economic growth, this suggests an especially promising strategy for development in some rural regions.

Suggested Citation

  • Tessa Conroy & Philip Watson, 2023. "Overeducation, natural amenities, and entrepreneurship," Small Business Economics, Springer, vol. 61(3), pages 1111-1131, October.
    • Handle: RePEc:kap:sbusec:v:61:y:2023:i:3:d:10.1007_s11187-023-00734-w
    DOI: 10.1007/s11187-023-00734-w
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    More about this item

    Keywords

    Rural; Entrepreneurship; Growth; Amenities; Skills gap;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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