Chinese Entrepreneurs Preference in Income Redistribution Policy

Abstract

This paper delves into an intriguing phenomenon: the low preference for income redistribution policies among Chinese entrepreneurs when compared to other employment statuses in China. Understanding this unique policy preference is crucial for policymakers aiming to implement effective socio-economic strategies. Drawing comprehensive insights from an array of existing studies and utilizing data from the World Value Survey (WVS), we proposed three hypotheses. These hypotheses were centered around entrepreneurs' education level, their attribution of success to effort or luck, and their inherent trust in the government, respectively.The WVS data supported two of these hypotheses. Firstly, entrepreneurs in China tend to hold the belief that success is mostly attributed to effort rather than serendipity. This belief affects their preference for redistribution policies. Secondly, among Chinese entrepreneurs, there is a lack of confidence in the government's in general, which may extend to their skepticism regarding the government's aptitude in overseeing fair income redistribution.