Economics

Document Type

Article

Abstract

We hypothesize that individuals with a larger social-family network are more likely to choose self-employment. We test this hypothesis using data on temporary rural–urban migrants in China. The size of a migrant’s social-family network is measured by the number of relatives and friends this migrant greeted during the past Spring Festival. After controlling for endogeneity using an instrumental variable approach, our results show that a rural–urban migrant with a larger social-family network is more likely to be self-employed. This finding is robust to alternative model specifications and various restrictions on the estimation sample.

Publication Title

IZA Journal of Labor and Development

Publication Date

12-1-2015

Volume

4

Issue

1

DOI

10.1186/s40175-015-0026-6

Keywords

D85, J23, J61

Creative Commons License

Creative Commons Attribution-Share Alike 4.0 International License
This work is licensed under a Creative Commons Attribution-Share Alike 4.0 International License.

Included in

Economics Commons

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