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The effects of Urban Identity on Entrepreneurial Choice

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  • Yanhong Wang
  • Haifang Feng
  • Tiantian Zhang

Abstract

This study investigate how the Urban identity(UI) influence the entrepreneurial choice of the migrants. Drawing on the identity economics theory in combination with microscopic perspective on entrepreneurship, we conclude that the UI increases the odds of self-employment of the migrants by 19.91% after solving endogenous problem in our sample of 126385 individuals from the China Migrants Dynamic Survey. We test the moderating effect of medical insurance and find that the interaction coefficient is positive. This study further reveals that the expanding social networks, improving urban integration, and increasing income are the three main mechanisms through which the UI influences the entrepreneurial choice of the migrants. So, we derive results consistent with our hypotheses. The findings have implications for both the entrepreneurship and national policy literature.

Suggested Citation

  • Yanhong Wang & Haifang Feng & Tiantian Zhang, 2024. "The effects of Urban Identity on Entrepreneurial Choice," PLOS ONE, Public Library of Science, vol. 19(4), pages 1-18, April.
    • Handle: RePEc:plo:pone00:0296645
    DOI: 10.1371/journal.pone.0296645
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    References listed on IDEAS

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    3. Michael Fritsch & Pamela Mueller, 2008. "The effect of new business formation on regional development over time: the case of Germany," Small Business Economics, Springer, vol. 30(1), pages 15-29, January.
    4. André van Stel & Peter Brouwer & Sander Wennekers & Jolanda Hessels, 2007. "Social security arrangements and early-stage entrepreneurial activity," Scales Research Reports H200708, EIM Business and Policy Research.
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