Does housing purchase affect entrepreneurship? -Evidence from urban households in China

Zhaoyingzi Dong, Eddie Chi-man Hui and Chenwei Yu

International Review of Economics & Finance, 2024, vol. 96, issue PB

Abstract: The study applies an endogenous switching probit model, using the data from the China Household Finance Survey (CHFS) to explore the joint decision mechanism between housing purchase and entrepreneurship and estimate the (treatment) effect of housing-purchase on entrepreneurship. The findings are threefold. First, a higher housing price reduces the probability of house-purchase intention, and also that of actual house-purchase-action. Second, both house-purchase-intention and -action discourage actual entrepreneurship investment. Third, house-purchase-intention has a negative effect on potential entrepreneurship plans, while house-purchase-action encourages households to plan for a business in the future.

Keywords: Entrepreneurship; House-purchase; Endogenous switching probit model; Urban households (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:96:y:2024:i:pb:s1059056024006130

DOI: 10.1016/j.iref.2024.103621

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