Religious diversity and entrepreneurship in transition: lessons for policymakers

Nikolova, Elena; Simroth, Dora

doi:10.1186/s40174-014-0028-4

IZA Journal of European Labor Studies

Table 5 Probit regressions: robustness checks

From: Religious diversity and entrepreneurship in transition: lessons for policymakers

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	Trial	Startup	Trial	Startup	Trial	Startup	Trial	Startup
	Diversity dummy		Regional diversity		After 2005		Moving
Diversity	0.02*	0.03	0.10**	-0.09	0.04**	0.08	0.05**	0.06
	(0.01)	(0.03)	(0.04)	(0.14)	(0.02)	(0.11)	(0.02)	(0.06)
Male	0.06***	-0.01	0.06***	-0.01	0.03***	0.03	0.06***	-0.01
	(0.01)	(0.02)	(0.01)	(0.02)	(0.00)	(0.02)	(0.01)	(0.02)
Age	0.00***	0.00	0.00***	0.00	0.00***	0.00	0.00***	0.00
	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)
A g e ²	–	–	–		–	–	–	–
Muslim	-0.02	-0.03	-0.02	-0.04	0.00	-0.02	-0.02	-0.02
	(0.02)	(0.05)	(0.02)	(0.04)	(0.01)	(0.05)	(0.02)	(0.05)
Christian	0.01	0.02	0.01	0.01	0.01	0.00	0.01	0.02
	(0.01)	(0.03)	(0.01)	(0.03)	(0.01)	(0.05)	(0.01)	(0.03)
Risk Score	0.02***	0.02***	0.02***	0.02***	0.01***	0.01	0.02***	0.02***
	(0.00)	(0.01)	(0.00)	(0.01)	(0.00)	(0.01)	(0.00)	(0.01)
Secondary Education	0.06***	0.04	0.06***	0.04	0.03***	0.07	0.06***	0.04
	(0.01)	(0.04)	(0.01)	(0.04)	(0.01)	(0.05)	(0.01)	(0.04)
College Education	0.09***	0.07	0.09***	0.06	0.05***	0.09*	0.09***	0.06
	(0.02)	(0.05)	(0.02)	(0.05)	(0.01)	(0.05)	(0.02)	(0.05)
Father’s Education	0.00***	0.00	0.00***	0.00	0.00***	0.01	0.00***	0.00
	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)	(0.00)
Member Communist	0.03***	-0.02	0.03***	-0.02	0.01***	-0.05**	0.03***	-0.02
Party	(0.01)	(0.02)	(0.01)	(0.02)	(0.00)	(0.03)	(0.01)	(0.02)
Urban	0.00	-0.01	0.00	-0.00	0.00	0.01	0.00	-0.01
	(0.01)	(0.02)	(0.01)	(0.02)	(0.00)	(0.03)	(0.01)	(0.02)
No Move							-0.02***	0.00
							(0.01)	(0.02)
Loan Accepted		0.14***		0.14***		0.13***		0.14***
		(0.02)		(0.02)		(0.03)		(0.02)
Loan Rejected		-0.33***		-0.33***		-0.38***		-0.33***
		(0.04)		(0.04)		(0.04)		(0.04)
Locality Controls	✓	✓	✓	✓	✓	✓	✓	✓
Country Fixed Effects	✓	✓	✓	✓	✓	✓	✓	✓
Obs.	21,725	3,046	21,725	3,046	20,079	1,401	21,634	3,042
Pseudo R ²	0.11	0.16	0.11	0.16	0.12	0.16	0.11	0.16

Notes. The table presents average marginal effects obtained from probit regressions. The dependent variables are whether the individual ever tried to set up a business and whether he managed to set it up (conditional on trial). Robust standard errors are in parentheses clustered at the country level. In Columns 1 and 2 Diversity is calculated as a dummy variable equal to 1 if local religious fractionalization is higher than 0.3. In Columns 3 and 4 Diversity is calculated as regional religious fractionalization. In Columns 5 - 8 Diversity is calculated as local religious fractionalization. Columns 5-6 limit the sample to those who tried to start a business only after 2005, while columns 7-8 control for whether the individual has ever moved. The Locality Controls not listed in the table are all of the locality (PSU) control variables included in Tables 2 and 3. *p < 0.10, **p < 0.05, ***p < 0.01. Checkmarks indicate that the respective control is included in the regressions.

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