Owning your future: Entrepreneurship and the prospects of upward mobility in China

Li Wang, Lihua Liu and Yunhao Dai

Economic Modelling, 2021, vol. 104, issue C

Abstract: Entrepreneurship can be a means for wealth accumulation and upward mobility. However, would people with prospects of upward mobility (POUM) be more likely to engage in entrepreneurship in order to achieve upward mobility? Using data from the Chinese General Social Survey (CGSS), we show for the first time that people with higher POUM will be more likely to engage in entrepreneurship. The effect of POUM on entrepreneurship is stronger for individuals with lower financial constraints. Moreover, higher POUM can enhance an individual's risk-taking attitude and degree of social capital, thereby motivating entrepreneurship. Overall, this article highlights the crucial noneconomic role that social mobility expectations play in driving individuals towards entrepreneurship.

Keywords: Prospects of upward mobility; Entrepreneurship; Risk-taking; Social capital; China (search for similar items in EconPapers)
JEL-codes: D10 G50 J62 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:104:y:2021:i:c:s0264999321002261

DOI: 10.1016/j.econmod.2021.105637

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