The Intergenerational Persistence of Self-Employment across China’s Planned Economy Era

Li, Minghao; Goetz, Stephan J.

doi:10.1086/703164

Cited by 17 publications

(11 citation statements)

References 45 publications

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“…Recent studies using Chinese datasets exhibit similar findings (Li and Goetz 2019; Lu and Tao 2010). For example, Li and Goetz (2019) show that having at least one self‐employed parent before the socialist transformation increases an individual's probability of being self‐employed after the economic reform by 29.8 per cent in urban areas, compared to those without self‐employed parents. In our dataset, we confirmed that parent's self‐employment status is significantly associated with children's self‐employment and is uncorrelated with children's earnings from self‐employment.…”

Section: Resultssupporting

confidence: 68%

“…The socialist transformation started in 1952 and accelerated soon after (Liu and Wang 2006). By 1956, it was close to complete with more than 99 per cent of enterprises under state control (Li and Goetz 2019), and by 1958 with almost the entire private economy eliminated (Qian 2000). Pursuing entrepreneurial activities and becoming self‐employed was considered as a ‘capitalist tail’ and must be severed.…”

Section: Literature Reviewmentioning

confidence: 99%

“…social networks) and the impact of individual characteristics (e.g. family composition, entrepreneurial personalities) have an important impact on women's propensity to become self‐employed and on the success of their business (Li and Goetz 2019; Obschonka et al . 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

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Does an Entrepreneurial Career Pay for Women in China?

Xiu

Gunderson

2020

Brit J Industrial Rel

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Using data from the Chinese Household Income Project survey in 2013, our male–female pay‐gap decomposition illustrates that the gender earnings gap is larger among the self‐employed than the wage‐employed after controlling for the effect of various pay‐determining characteristics. Our self‐employed versus wage‐employed decomposition also controls for selection into self‐employment as well as those pay‐determining characteristics. We find that wage‐employed women would earn less than their current earnings if they shifted to self‐employment, while wage‐employed men would earn more than their current earnings if they became self‐employed. In essence, self‐employed women suffer from double jeopardy. They not only earn less than men in self‐employment due to lower returns for the same pay‐determining characteristics, but women in self‐employment also earn less than women in wage employment when they have the same pay‐determining characteristics.

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Section: Resultssupporting

confidence: 68%

Section: Literature Reviewmentioning

confidence: 99%

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Does an Entrepreneurial Career Pay for Women in China?

Xiu

Gunderson

2020

Brit J Industrial Rel

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“…What induces people to become entrepreneurs? Previous studies have considered the factors that motivate entrepreneurial activities including geography (Michelacci and Silva, 2007;Glaeser, et al 2010;Pistaferri, et al 2021), parental background (Lindquist and Van Praag, 2015;Li and Goetz, 2019;Nicolaou, et al 2008;Dohmen, et al 2012), financial constraint (Evans and Jovanovic, 1989;Hurst and Lusardi, 2004;Andersen and Nielsen, 2012;Hvide and Møen, 2010), etc. And there is a growing literature that highlights the importance of behavioral reasons underlying entrepreneurial decisions (e.g., Bernardo and Welch, 2001).…”

Section: Introductionmentioning

confidence: 99%

The Salience of Entrepreneurship: Evidence from Online Business

et al. 2021

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We study the psychological biases underlying people's decision of becoming an entrepreneur in the context of online business. Using the entire universe of entrepreneurs on the world's largest online shopping platform, we find that people are more likely to become an online entrepreneur when observing the emergence of successful stores located in the close neighborhood. We rely on the store rating system and detailed geographical information for identification. The rating upgrade of an online store led to a significant increase in the number of new stores in the 0.5km radius of the neighborhood across rural areas of China. The effect increases with the level of upgrades, decreases with distance and, is robust to a wide range of rigorous model specifications. The entrants motivated by observing these upgraded stores underperform relative to others in terms of lower sales and a higher probability of exit, suggesting the entry decision is suboptimal. Overall, the results are most consistent with salience theories of choice and cannot be explained by regional development or rational learning.

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“…There are also studies on the urban self-employed, see, for example,Yueh (2009) andLi and Goetz (2019).…”

mentioning

confidence: 99%