In this SCCEI seminar UCSD faculty Ruixue Jia discusses the relationship between college entrance exams and entrepreneurship in China.
An influential theoretical literature has long noted that talent can be used in both the entrepreneur and non-entrepreneur sectors and its allocation depends on the reward restructure. We test this insight by linking administrative college admissions data for 1.8 million individuals with information on firm registration records in China. I will open discussion on the findings of our study including who is more likely to create firms, which firms are more successful, and the overall association between entrepreneurial ability and college entrance exam scores.