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Life-cycle factors and entrepreneurship: evidence from rural China

Wei Xiao () and Mingqin Wu ()
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Wei Xiao: Southwestern University of Finance and Economics
Mingqin Wu: South China Normal University

Small Business Economics, 2021, vol. 57, issue 4, No 21, 2017-2040

Abstract: Abstract This paper investigated the association between life-cycle factors and entrepreneurship. We provided a comprehensive investigation into life-cycle factors, such as marriage, health, education, age, previous labor market experience, and gender of children. Moreover, we focused on rural persons, who are confronted with a disadvantageous entrepreneurial environment. We found that marriage was positively associated with the likelihood of entrepreneurship, and the association existed only among rural men. Educated persons and healthy persons were more likely to engage in entrepreneurial activities. In particular, previous hospitalization experience and high medical expenses were negatively associated with entrepreneurship, while minor health problems were not correlated with entrepreneurship. Concerning the gender of children, daughters instead of sons were positively correlated with entrepreneurial probability, and the correlation was stronger and more significant among rural men. Our results could be useful for policymakers seeking to incentivize entrepreneurship among rural residents in developing countries.

Keywords: Entrepreneurship; Life-cycle factors; China; L26; J16; H55 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s11187-020-00370-8

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