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The benefits of having an entrepreneur-mother: Influence of mother's entrepreneurial status on human capital formation among children

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  • Li, Wenchao
  • Tong, Di

Abstract

Prior research shows that childcare is a unique driver for female entrepreneurship, as entrepreneurship allows women to increase time allocation on child supervision. Yet, whether female entrepreneurship actually promotes childrearing outcomes remains contentious in extant literature. This study focuses on child human capital formation as a key childrearing outcome. Drawing on the occupational inheritance literature, we suggest that, in addition to supervision, entrepreneur-mothers may foster child human capital formation through value transmission—in particular, transmitting self-direction values to children. Using nationally representative data from China, we find that children with entrepreneur-mothers exhibit better human capital formation outcomes—especially when they are younger and female. We further show that both supervision and value transmission are present, with the latter being a more important mechanism. Reconciling conflicting views in the literature, our study has both theoretical and practical implications.

Suggested Citation

  • Li, Wenchao & Tong, Di, 2023. "The benefits of having an entrepreneur-mother: Influence of mother's entrepreneurial status on human capital formation among children," Journal of Business Venturing, Elsevier, vol. 38(6).
    • Handle: RePEc:eee:jbvent:v:38:y:2023:i:6:s0883902623000435
    DOI: 10.1016/j.jbusvent.2023.106329
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    References listed on IDEAS

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    1. John Breen & Cheryl Calvert & Judy Oliver, 1995. "Female Entrepreneurs In Australia: An Investigation Of Financial And Family Issues," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 445-461.
    2. Parker, Simon C., 2008. "Entrepreneurship among married couples in the United States: A simultaneous probit approach," Labour Economics, Elsevier, vol. 15(3), pages 459-481, June.
    3. Liu, Zhiqiang, 2005. "Institution and inequality: the hukou system in China," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 133-157, March.
    4. Ruhm, Christopher J., 2008. "Maternal employment and adolescent development," Labour Economics, Elsevier, vol. 15(5), pages 958-983, October.
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    Cited by:

    1. Shantz, Angelique Slade & McMullen, Jeffery S., 2024. "Journal of business venturing 2023 year in review: The year of the whole-person entrepreneur," Journal of Business Venturing, Elsevier, vol. 39(6).
    2. Andric, Mateja & Hsueh, Josh Wei-Jun & Zellweger, Thomas & Hatak, Isabella, 2024. "Parental divorce in early life and entrepreneurial performance in adulthood," Journal of Business Venturing, Elsevier, vol. 39(3).

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