An Empirical Analysis Based on CFPS Panel Data: Impacts of China's Housing Price Rising on Household Entrepreneurship

Abstract

China's housing prices have been on the rise since the 1990s. At the same time, China's urban residents' housing rate had reached 96% by 2020. Based on the above-mentioned realistic background, the rise and fall of housing prices will inevitably affect a series of behaviors such as investment, consumption and entrepreneurship of Chinese households. According to the data from China Family Panel Studies (CFPS) from 2014 to 2018, this article analyzes the net value of housing and whether the ownership of housing property rights has an impact on family entrepreneurship based on the comprehensive effects of housing prices on entrepreneurship of “wealth effect”, “collateral effect” and “substitution effect”. The study results show that the increase in house prices generally promotes family entrepreneurial decision-making, and the promotion effect is more significant for families with housing property rights. Still, for families without housing property rights, the increase in housing prices has an opposite inhibitory effect on family entrepreneurship. Based on the above conclusions, this article puts forward some suggestions on related policies.