What types of homeowners are more likely to be entrepreneurs? The evidence from China
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This paper highlights a previously undocumented observation regarding the heterogeneity of the association between entrepreneurship and homeownership across ownership through different pathways. Our empirical work based on large individual-level microdata from China’s Urban Household Survey (UHS) suggests that, while owners of market housing do not differ much from renters in terms of the odds of entrepreneurship entry, owners of privatized public housing are associated with significantly less propensity for entrepreneurial engagement and owners of inherited housing are correlated with a much higher prevalence of entrepreneurship. In addition, our empirical findings suggest that the associations between homeownership and entrepreneurial engagement vary with housing value. These findings remain consistent across a wide variety of model specifications, including models controlling for the potential endogeneity between homeownership and entrepreneurship. We provide some preliminary rationalization of these findings and discuss their policy implications.
KeywordsHomeownership Entrepreneurship Heterogeneity impacts China
JEL classificationJ49 L26 R29
The authors thank the financial supports from the NSFC-ESRC Joint Funding (NSF7161101095), National Natural Science Foundation of China (NSF71573166 and NSF71173045), and Innovation Foundation of Graduate School of Shanghai University of Finance and Economics (CXJJ-2016-387).
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