Social-family network and self-employment: evidence from temporary rural–urban migrants in China

Junfu Zhang, Zhong Zhao
2015 IZA Journal of Labor & Development  
We hypothesize that individuals with a larger social-family network are more likely to choose self-employment. We test this hypothesis using data on temporary rural-urban migrants in China. The size of a migrant's social-family network is measured by the number of relatives and friends this migrant greeted during the past Spring Festival. After controlling for endogeneity using an instrumental variable approach, our results show that a rural-urban migrant with a larger social-family network is
more » ... ore likely to be self-employed. This finding is robust to alternative model specifications and various restrictions on the estimation sample. JEL classifications: J23; J61; D85
doi:10.1186/s40175-015-0026-6 fatcat:mrekzbagtngongh2kf7rg27ocy