IDEAS home Printed from https://ideas.repec.org/p/wdi/papers/2002-512.html
   My bibliography  Save this paper

Embracing the Market: Entry into Self-Employment in Transitional China, 1978-1996

Author

Listed:
  • Xiaogang Wu

    ()

Abstract

This paper introduces labor market transition as an intervening process by which the macro institutional transition to a market economy alters social stratification outcome. Rather than directly addressing income distribution, it examines the pattern of workers??? entry into self-employment in reform-era China (1978-1996), focusing on rural-urban differences and the temporal trend. Analyses of data from a national representative survey in China show that education, party membership and cadre status all deter urban workers??? entry into self-employment, while education promotes rural workers??? entry into self-employment. As marketization proceeds, the rate of entry into self-employment increases in both rural and urban China, but urban workers are increasingly more likely to take advantages of the new market opportunities. In urban China, college graduates and cadres are still less likely to be involved in self-employment, but they are becoming more likely to do so in the later phase of reform. The diversity of transition scenarios is attributed to rural-urban differences in labor market structures.

Suggested Citation

  • Xiaogang Wu, 2002. "Embracing the Market: Entry into Self-Employment in Transitional China, 1978-1996," William Davidson Institute Working Papers Series 512, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:2002-512
    as

    Download full text from publisher

    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/39897/3/wp512.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766.
    2. Borjas, George J & Bronars, Stephen G, 1989. "Consumer Discrimination and Self-employment," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 581-605, June.
    3. Yingyi Qian, 1999. "The Process of China's Market Transition (1978-98): The Evolutionary, Historical, and Comparative Perspectives," Working Papers 99012, Stanford University, Department of Economics.
    4. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-535, June.
    5. Victor R. Fuchs, 1980. "Self-Employment and Labor Force Participation of Older Males (Revised)," NBER Working Papers 0584, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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).
    2. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004.
    3. Ana I. Moreno-Monroy & Shu Yu & Victoria Euse, 2016. "Urban Employment in Small Businesses and the Level of Economic Development: Evidence from Chinese Cities," Growth and Change, Wiley Blackwell, vol. 47(1), pages 53-71, March.
    4. Cathy Yang Liu & Xi Huang, 2016. "The Rise of Urban Entrepreneurs in China: Capital Endowments and Entry Dynamics," Growth and Change, Wiley Blackwell, vol. 47(1), pages 32-52, March.

    More about this item

    Keywords

    Market; Rural China; Self-employment; Transition; and Urban China;

    JEL classification:

    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wdi:papers:2002-512. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WDI). General contact details of provider: http://edirc.repec.org/data/wdumius.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.