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Does Sex Imbalance Affect Family Businesses? Evidence from Rural China

Author

Listed:
  • Yan Yuan

    (Zhongnan University of Economics and Law)

  • Zhao Rong

    (Zhongnan University of Economics and Law)

  • Lihe Xu

    (Guangdong Institute for International Strategies, Guangdong University of Foreign Studies)

Abstract

This paper suggests that sex imbalance is a gender-related determinant of entrepreneurship. China has been experiencing an increasing surplus of men in the pre-marital age cohort since the late 1970s. This sex imbalance intensifies the mating competition among single men, thus stimulating households with sons to build wealth through start-up businesses. By examining households’ ownership of businesses based on a 2009 Rural Finance Survey in China, we find that son households are more likely to own businesses in villages where the sex imbalance is more severe. We further provide evidence that these son households are more capable of sustaining their businesses.

Suggested Citation

  • Yan Yuan & Zhao Rong & Lihe Xu, 2020. "Does Sex Imbalance Affect Family Businesses? Evidence from Rural China," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 4-18, March.
    • Handle: RePEc:kap:jfamec:v:41:y:2020:i:1:d:10.1007_s10834-019-09644-0
    DOI: 10.1007/s10834-019-09644-0
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    2. Miao, Shuchao & Chi, Jing & Liao, Jing & Qian, Long, 2021. "How does religious belief promote farmer entrepreneurship in rural China?," Economic Modelling, Elsevier, vol. 97(C), pages 95-104.

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    More about this item

    Keywords

    Sex imbalance; Family business; Entrepreneurship; Rural China;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • D1 - Microeconomics - - Household Behavior

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