Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/266781 
Year of Publication: 
2022
Series/Report no.: 
GLO Discussion Paper No. 1208
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
We examine the causal effect of air pollution on an individual's propensity for entrepreneurship in China. Our preferred model, which employs an instrumental variable approach to address endogeneity arising from sorting into entrepreneurship and locational choices, suggests that exposure to higher intensity of air pollution lowers one's proclivity for entrepreneurship. A one standard deviation increase in air pollution leads to a 21.2% decrease in the propensity for entrepreneurship. We also find that self-efficacy is a channel in the relationship between air pollution and entrepreneurship. In addition, education moderates the relationship between air pollution and self-efficacy.
Subjects: 
Air pollution
Entrepreneurship
China
JEL: 
J24
L26
Q53
Document Type: 
Working Paper

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