Self-employment in urban China: Networking in a transition economy
AbstractThis paper investigates the relationship between self-employment and social networks in urban China, an economy rife with informational and institutional imperfections, under-developed financial markets, but a growing and important non-state sector. Having a social network can help the self-employed access supply and credit networks, and assist in navigating an uncertain institutional environment where permissions and licenses often require inter-personal relationships to facilitate and reduce the informational costs of enforcement by dealing with known persons. Thus, holding other productive and observable traits constant including attitude toward risk where possible, social networks are expected to be a significant correlate to self-employment which is borne out by the evidence. Examining three tranches of the self-employed (those who are self-employed, those who are self-employed as a second job, and a sub-sample who have experienced unemployment and then became self-employed), the paper finds that social networks significantly predict self-employment except for those who are working for themselves as a second job. Gender differences are also notable.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal China Economic Review.
Volume (Year): 20 (2009)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/chieco
China Self-employment Social networks Economic development;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frye, Timothy & Zhuravskaya, Ekaterina, 2000.
"Rackets, Regulation, and the Rule of Law,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 16(2), pages 478-502, October.
- Frye, Timothy & Zhuravskaya, Ekaterina, 2001. "Rackets, Regulation and the Rule of Law," CEPR Discussion Papers 2716, C.E.P.R. Discussion Papers.
- Timothy Frye & Ekaterina Zhuravskaya, 2000. "Rackets, Regulation and the Rule of Law," Working Papers w0002, Center for Economic and Financial Research (CEFIR).
- Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(02), pages 222-240, April.
- Simeon Djankov & Yingyi Qian & Gerard Roland & Ekaterina Zhuravskaya, 2005.
"Who Are China’s Entrepreneurs?,"
w0047, Center for Economic and Financial Research (CEFIR).
- Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
- Knight, John & Yueh, Linda, 2004.
"Job mobility of residents and migrants in urban China,"
Journal of Comparative Economics,
Elsevier, vol. 32(4), pages 637-660, December.
- John Knight & Linda Yueh & Linda Y. Yueh, 2003. "Job Mobility of Residents and Migrants in Urban China," Economics Series Working Papers 163, University of Oxford, Department of Economics.
- Abhijit V. Banerjee & Andrew F. Newman, 1990.
"Occupational Choice and the Process of Development,"
911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-98, April.
- Simeon Djankov & Edward Miguel & Yingyi Qian & Gerard Roland & Ekaterina Zhuravskaya, 2005.
"Who are Russia’s entrepreneurs?,"
w0048, Center for Economic and Financial Research (CEFIR).
- Jian Zhang & Linxiu Zhang & Scott Rozelle & Steve Boucher, 2006. "Self-Employment With Chinese Characteristics: The Forgotten Engine Of Rural China'S Growth," Contemporary Economic Policy, Western Economic Association International, vol. 24(3), pages 446-458, 07.
- Chen, Zhiwu, 2003. "Capital markets and legal development: The China case," China Economic Review, Elsevier, vol. 14(4), pages 451-472.
- Anderson, T. W. & Kunitomo, Naoto & Morimune, Kimio, 1986. "Comparing Single-Equation Estimators in a Simultaneous Equation System," Econometric Theory, Cambridge University Press, vol. 2(01), pages 1-32, April.
- Appleton, Simon & Song, Lina & Xia, Qingjie, 2005. "Has China crossed the river? The evolution of wage structure in urban China during reform and retrenchment," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 644-663, December.
- Allan G. King, 1974. "Occupational choice, risk aversion, and wealth," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 27(4), pages 586-596, July.
- Mohapatra, Sandeep & Rozelle, Scott & Goodhue, Rachael, 2007. "The Rise of Self-Employment in Rural China: Development or Distress?," World Development, Elsevier, vol. 35(1), pages 163-181, January.
- Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
- Blanchflower, David G & Oswald, Andrew J, 1998.
"What Makes an Entrepreneur?,"
Journal of Labor Economics,
University of Chicago Press, vol. 16(1), pages 26-60, January.
- Cui, Yuling & Nahm, Daehoon & Tani, Massimiliano, 2013. "Self-Employment in China: Are Rural Migrant Workers and Urban Residents Alike?," IZA Discussion Papers 7191, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.