Housing investment and family entrepreneurship: Evidence from China.

Abstract

The aim of this article is to explore the impact of housing investment on household entrepreneurship. Using survey data from China and employing a Probit model, we examine three aspects of housing status and innovatively subdivide household entrepreneurship into agricultural entrepreneurship and business entrepreneurship. The results show that households with higher housing investment are less likely to become agricultural entrepreneurs, but more likely to start a new business. Households with full-owned housing enjoy a higher likelihood to become business entrepreneurs. However, other ownerships have no relation with the choice of entrepreneurship. More housing loans discourage entrepreneurial activities. One exception is that bank loan raises the chance of being agricultural entrepreneurs. Households who build their own houses have a higher agricultural entrepreneurship. Buying market price houses encourages households to be business entrepreneurs. Low-price house and inherited house prevent households from being business entrepreneurs.