Does school choice increase the rate of youth entrepreneurship?

Because entrepreneurial activity is a key source of economic growth, promoting youth entrepreneurship has become a priority for policymakers. School choice programs force administrators and teachers to be more entrepreneurial in their jobs by encouraging innovation and by creating competition and a more business-like environment in K-12 education. Does going to school in this climate make students more likely to become entrepreneurs? In this paper we test whether youth entrepreneurship rates are higher in counties with school choice programs. We find that voucher programs create higher rates of youth entrepreneurship, while charter schools do not, relative to traditional public schools. (c) 2008 Elsevier Ltd. All rights reserved.