Date of this Version
The Review of Economics and Statistics
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.
Wang, S. (2012). Credit Constraints, Job Mobility, and Entrepreneurship: Evidence From a Property Reform in China. The Review of Economics and Statistics, 94 (2), 532-551. http://dx.doi.org/10.1162/REST_a_00160
Date Posted: 27 November 2017
This document has been peer reviewed.