The Role of Urban Public Service Inclusivity in Promoting Migrant Entrepreneurship: Evidence From Chinese Cities

Lanxin Zhang and Yanping Pu

Growth and Change, 2025, vol. 56, issue 4

Abstract: Migrant entrepreneurship is a vital engine of urban innovation and economic growth, yet its potential is often constrained by institutional barriers. This study investigates the foundational role of inclusive urban public services—closely linked to migrants' rights to survival and development—in supporting migrant entrepreneurial activity. Drawing on recent reforms in China aimed at equalizing urban public services, we find that greater inclusivity in urban public service provision significantly promotes migrant entrepreneurship. Mechanism analyses identify three pathways: inclusive urban public services (i) generate psychological incentives that strengthen migrants' sense of belonging in cities, (ii) encourage migrant households to allocate labor and financial resources to urban areas, and (iii) expand migrants' access to bilateral social networks rich in market opportunities, all of which foster entrepreneurial action. Heterogeneity analyses further show that improvements in urban public service inclusivity not only raise the quality of migrant entrepreneurship but also exert stronger effects in central regions, where fiscal capacity and economic development are more balanced than in eastern or western regions. These findings underscore the substantial economic returns of integrating migrants into formal governance systems and provide broader insights into unlocking migrant entrepreneurial potential in developing countries.

Date: 2025
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