Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55121
Authors: 
Frijters, Paul
Kong, Tao
Meng, Xin
Year of Publication: 
2011
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5967
Abstract: 
We use a unique data of representative migrants and urban local workers in 15 Chinese cities to investigate entrepreneurship and credit constraints under labour market discrimination. We divide self employed into prefer to be self-employed and prefer to have a salaried job but cannot find one; and divide salaried workers into want-to-be entrepreneurs and happy-to-be salaried workers. Over 40 percent of migrant workers are either currently or want-to-be entrepreneurs. Both groups are very similar in terms of risk taking preferences and network size. Want-to-be entrepreneurs however suffer from credit constraints identified by negative financial shocks in the year before. Our back-of-envelope calculation reveals that overcoming the current level of credit constraints may be worth 2% of GDP per year direct earnings increases.
Subjects: 
entrepreneurs
credit constraints
migration
China
JEL: 
L26
J14
J70
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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