Credit Constraints, Job Mobility And Entrepreneurship: Evidence From A Property Reform In China
Source: New York University
This paper provides new evidence on the impact of private property rights on entrepreneurship. The author explores this issue in the context of a housing reform in urban China that allowed state employees renting state-owned housing the opportunity to buy their homes at subsidized prices. Using the reform as an exogenous change in the capital constraints and mobility costs that influence individuals' entry into entrepreneurship, These estimates suggest that the property reform increased self-employment.