Credit Constraints, Job Mobility, and Entrepreneurship: Evidence from a Property Reform in China

Shing-Yi Wang

The Review of Economics and Statistics, 2012, vol. 94, issue 2, 532-551

Abstract: This paper provides new evidence on the impact of private property rights and employer-provided housing on entrepreneurship. I find an increase in self-employment following a reform in urban China that allowed state employees who were renting state-owned housing the opportunity to buy their homes at subsidized prices. I develop a model of job choice to test two mechanisms that might explain how the reform increased entrepreneurship. I find evidence that the reform reduced labor mobility costs and alleviated credit constraints by allowing households to capitalize on the value of the real estate. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Keywords: credit constraints; labor mobility; entrepreneurship; China; housing; reform; property rights; privatization (search for similar items in EconPapers)
JEL-codes: J32 J48 O18 O53 P14 P21 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (108)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00160 link to full text PDF (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:94:y:2012:i:2:p:532-551

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().