Cultural diversity and self-employment choice ——a micro-level evidence from China

Authors: Pan Zhu*, , BINGDONG SUN, EAST CHINA NORMAL UNIVERSITY
Topics: Economic Geography
Keywords: cultural diversity, entrepreneurship, self-employment
Session Type: Paper
Day: 4/12/2018
Start / End Time: 10:00 AM / 11:40 AM
Room: Galerie 4, Marriott, 2nd Floor
Presentation File: No File Uploaded


Based on the CLDS (China Labor-force Dynamics Survey) data and probit models, this paper discusses the relationship between cultural diversity in Chinese cities and self-employment (including two types: self-employment without any employee or with more than one employee). The findings reveal that, cultural diversity shows significant and negative correlation with self-employment, while it doesn’t work with the self-employment with more than one employee, and good familiarity with neighbors can effectively alleviate cultural diversity’s negative influence; we further divide those who are self-employed into 7 categories by initial registered capital and find that cities with higher cultural diversity contribute to entrepreneurial activities with a larger investment scale. In China, the double-bladed function of cultural diversity may separately embody in survival entrepreneurship and opportunity entrepreneurship.

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