A new study conducted by the Ifo Institute and the Johannes Gutenberg University Mainz reveals a significant correlation between economics education in schools and increased entrepreneurial activity later in life. The research indicates a four percentage point rise in the likelihood of individuals pursuing self-employment when economics was a mandatory subject during their schooling.
Larissa Zierow, Research Professor at the Ifo Institute and Professor at the Hochschule Reutlingen, emphasized the potential of economic education, noting that “economic education in schools can foster entrepreneurship in adulthood”. However, she stressed that the design and content of the curriculum are crucial. “When curricula emphasize the role of the individual within the economy, economics education has a lasting impact.
The rise in entrepreneurial self-sufficiency observed in adulthood appears to be independent of an individual’s family background or the entrepreneurial history of their parents. Furthermore, the study found no negative impact on other economic sectors. The probability of employment in the public sector remained largely unchanged. According to Andranik Tumasjan, co-author of the study and Professor at the University of Mainz, “This suggests that economics education doesn’t redistribute labor across sectors but rather activates entrepreneurial potential that might otherwise remain untapped.
The research analyzed the impact of introducing economics education in German grammar schools between 1952 and 2007, examining its effect on adult self-employment. The analysis utilized a unique dataset combining individual survey data from the Socio-Economic Panel (SOEP) with reforms introduced at the state level. Individuals were considered affected by the reform if economics became a compulsory subject during the year they entered the ninth grade, providing a framework to assess the long-term consequences of this educational change.