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What types of homeowners are more likely to be entrepreneurs? The evidence from China

Article

Abstract

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.

Keywords

Homeownership Entrepreneurship Heterogeneity impacts China 

JEL classification

J49 L26 R29 

Notes

Acknowledgements

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).

Supplementary material

11187_2017_9976_MOESM1_ESM.docx (17 kb)
ESM 1 (DOCX 17 kb)

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.School of Public Economics and AdministrationShanghai University of Finance and EconomicsShanghaiChina

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