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Can entrepreneurship bring happiness? Evidence from China

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  • Zhao, Daping
  • Jiang, Jialing
  • Yin, Zhichao

Abstract

This paper investigates the relationship between entrepreneurial activities and the happiness of entrepreneurs. We estimate the effects of entrepreneurial decision-making, business experience and other factors on happiness by using China Household Finance Survey data. Our results derived from maximum likelihood estimation methods indicate that entrepreneurial decision-making and entrepreneurial experience affect household happiness significantly. The family well-being is significantly increased if the family is entrepreneurial, and it will be higher if actively entrepreneurial. Both entrepreneurial experience and entrepreneurial investment of time have significantly positive effect on the probability of family well-being. In addition, we find that the mechanism by which entrepreneurship brings happiness to households is through raising household income and wealth, that is, income effects and wealth effects.

Suggested Citation

  • Zhao, Daping & Jiang, Jialing & Yin, Zhichao, 2020. "Can entrepreneurship bring happiness? Evidence from China," Economic Modelling, Elsevier, vol. 91(C), pages 679-686.
    • Handle: RePEc:eee:ecmode:v:91:y:2020:i:c:p:679-686
    DOI: 10.1016/j.econmod.2019.12.009
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    Cited by:

    1. Giménez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2022. "Intergenerational correlation of self-employment in Western Europe," Economic Modelling, Elsevier, vol. 108(C).
    2. Shamsul Karim & Caleb Kwong & Mili Shrivastava & Jagannadha Pawan Tamvada, 2023. "My mother-in-law does not like it: resources, social norms, and entrepreneurial intentions of women in an emerging economy," Small Business Economics, Springer, vol. 60(2), pages 409-431, February.
    3. Aparicio, Sebastian & Audretsch, David & Noguera, Maria & Urbano, David, 2022. "Can female entrepreneurs boost social mobility in developing countries? An institutional analysis," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Karla María Orozco-Orozco & Osvaldo García-Mata & Eduardo Arango-Herrera, 2024. "Financial Literacy and Financial Well-Being Among Businesspersons from Victoria, Tamaulipas, Mexico," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 19(1), pages 1-25, Enero - M.
    5. Wen Xiang & Jianzhong Gao, 2023. "From Agricultural Green Production to Farmers’ Happiness: A Case Study of Kiwi Growers in China," IJERPH, MDPI, vol. 20(4), pages 1-25, February.
    6. Junguang Gao & Tao Chen & Thomas Schøtt & Fuzhen Gu, 2022. "Entrepreneurs’ Life Satisfaction Built on Satisfaction with Job and Work–Family Balance: Embedded in Society in China, Finland, and Sweden," Sustainability, MDPI, vol. 14(9), pages 1-21, May.
    7. Avom, Desire & Yselle Malah, Flora, 2022. "Social media and happiness nexus in the millennial generation," Telecommunications Policy, Elsevier, vol. 46(8).
    8. Xiaofen Yu & Dingpei Hu & Mingzhi Hu, 2024. "Unveiling the impact of housing debt on entrepreneurship: Evidence from China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 11(2), May.

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    More about this item

    Keywords

    Entrepreneurial activities; Happiness; Income effect; Wealth effect;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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