Will one child policy reduce entrepreneurship in China?

James Liang

China Economic Journal, 2012, vol. 5, issue 2-3, 85-95

Abstract: This paper argues that one child policy in China will negatively affect entrepreneurship in China 20 to 30 years later. The author first presents evidence that aging has been partially responsible Japan's recent economic stagnation. Then the paper presents evidence that young people are more able entrepreneurs. Moreover, the aging of the workforce can negatively affect entrepreneurship particularly for young people, because young people are promoted more slowly in an aging organization, and therefore accumulated less human capital to be successful entrepreneurs. Lastly, the paper predicts that entrepreneurship will suffer a great deal if China continues its one child policy.

Date: 2012
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DOI: 10.1080/17538963.2012.761837

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