Does Hukou Affect Entrepreneurship of Immigrants?Evidence from CLDS
As a basic institutional arrangement,the household registration system not only profoundly affects people's lives,but also continuously shapes the state of social and economic development.China's household registration system has a long history.Under this system background,China has formed a huge floating population group mainly composed of migrant work-ers and college graduates.Since China's economy entered a new stage of development,stabilizing growth and promoting em-ployment have become the key to achieving qualitative changes in economic development.In this process,how to effectively resolve the employment pressure generated by the floating population has become an important issue faced by the Party and the government.According to the institutional entrepreneurship theory proposed by DiMaggio(1988),the political pressure,economic pressure and technological pressure faced by individuals in the institutional field is an important motivation for making entrepreneurial decisions.In China,some studies have studied how external institutional changes affect entrepreneur-ship from the perspectives of minimum wage standards,social security,etc.However,few studies have paid attention to the entrepreneurial effects of the household registration system.Based on the above considerations,this paper studies the relation-ship between urban settlement threshold and family entrepreneurship of floating population from both theoretical and empiri-cal levels.First of all,this paper expounds the mechanism of household registration system affecting the family entrepreneur-ship of floating population from the theoretical point of view.On the one hand,the threshold of urban household registration can inhibit family entrepreneurial decision-making by reducing the social trust of the floating population;On the other hand,the perception of social stratification brought by the household registration system has a non-negligible impact on the forma-tion of entrepreneurial decision-making.Secondly,using the data of China Labor-force Dynamic Survey(CLDS)in 2012,2014 and 2016,and matching the data of the household registration threshold of each city,the relationship between the house-hold registration threshold and the decision of the migrant population to start a business is tested.The research of this paper finds that the threshold of urban household registration significantly inhibits the entrepreneurial decision of the floating popu-lation,and the probability of household entrepreneurship decreases by 5.3%when the threshold of urban household registra-tion increases by one unit.After changing the core explanatory variables,controlling the characteristics of birthplace and us-ing propensity score matching method to re-estimate,the conclusion of this paper remains robust.The results of the mecha-nism test show that the threshold of urban household registration reduces the level of social trust,which inhibits the entrepre-neurial decisions of migrant families.In addition,the estimated results of this paper also show that high-income households and households with higher education levels are more affected by the urban hukou threshold than low-income households and households with lower education levels.The research of this paper enriches the literature on the factors affecting entrepreneur-ship and the conclusions are helpful for governments at all levels to grasp the direction of household registration reform and the focus of stimulating regional entrepreneurial vitality.
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