Business Economics and Public Policy Papers

Document Type

Working Paper

Date of this Version

5-2012

Publication Source

The Review of Economics and Statistics

Volume

94

Issue

2

Start Page

532

Last Page

551

DOI

10.1162/REST_a_00160

Abstract

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.

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Date Posted: 27 November 2017

This document has been peer reviewed.