Doing business in China: parental background and government intervention determine who owns busines

Ruixue Jia, Xiaohuan Lan and Gerard Padró i Miquel

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: While intergenerational transmission of entrepreneurship is a well-known regularity, we hypothesize that in a transition economy where the state retains an important role, those whose parents are government workers may also be more likely to become business owners. We test the hypothesis in China and show that (1) on average, both entrepreneurs and government workers have a higher likelihood of having children who own incorporated businesses and (2) In provinces where government involvement is higher, the likelihood that children of government workers (entrepreneurs) own incorporated businesses is significantly higher (lower). Our study demonstrates that the local economic business environment shapes the influence of parental background on business ownership.

Keywords: business ownership; China; development; government intervention; intergenerational mobility (search for similar items in EconPapers)
JEL-codes: J01 N0 R14 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2021-06-01
New Economics Papers: this item is included in nep-cna
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Citations: View citations in EconPapers (8)

Published in Journal of Development Economics, 1, June, 2021, 151. ISSN: 0304-3878

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http://eprints.lse.ac.uk/110507/ Open access version. (application/pdf)

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Journal Article: Doing business in China: Parental background and government intervention determine who owns busines (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:110507

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