Migrant Entrepreneurship: The Family as Emotional Support, Social Capital and Human Capital

Mingzhi Hu, Yinxin Su and Haiyong Zhang

Emerging Markets Finance and Trade, 2021, vol. 57, issue 12, 3367-3386

Abstract: We examine how entrepreneurship among migrants in urban China is affected by household composition. Using microdata from the 2016 Chinese Labor-force Dynamics Survey, we find that after controlling for observables and regional-fixed effects, the probability of entrepreneurship increases by 1.4 percentage points for a one-unit increase in the number of family members living together. Such percentage points indicate a 7.87% increase in entrepreneurship rate relative to the national average. Results are robust to several specifications. We also provide explanations for the positive effect of family on entrepreneurship through which family provides emotional support, enhances social capital, and facilitates pooling of labor power.

Date: 2021
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DOI: 10.1080/1540496X.2019.1693364

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