The intergenerational persistence of self-employment across china’s planned economy era

Minghao Li, Stephan J. Goetz

Research output: Contribution to journalArticle

Abstract

Children whose parents were self-employed before China’s socialist transformation were more likely to become self-employed after the economic reform, even though they had no direct exposure to their parents’ businesses. The effect is statistically significant only for sons. The lack of direct exposure to family businesses impedes the transfer of business human capital and motivates us to explore personality traits as the underlying mechanisms. We find that children with self-employed parents are also more likely to invest in risky assets and to consume cigarettes. This suggests that children of self-employed parents inherit personality traits that induce risky behaviors.

Original languageEnglish (US)
Pages (from-to)1301-1330
Number of pages30
JournalJournal of Labor Economics
Volume37
Issue number4
DOIs
StatePublished - Oct 1 2019

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Planned economy
Persistence
Self-employment
China
Personality traits
Family business
Human capital
Assets
Economic reform
Risky behavior
Cigarettes

All Science Journal Classification (ASJC) codes

  • Industrial relations
  • Economics and Econometrics

Cite this

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The intergenerational persistence of self-employment across china’s planned economy era. / Li, Minghao; Goetz, Stephan J.

In: Journal of Labor Economics, Vol. 37, No. 4, 01.10.2019, p. 1301-1330.

Research output: Contribution to journalArticle

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