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Original scientific paper

https://doi.org/10.1080/1331677X.2022.2155207

Is pension insurance a barrier to entrepreneurship? New evidence from China

Yian Chen
Li Guiping
Wenjing Gao


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Abstract

This article provides evidence of the impact of pension insurance
on entrepreneurship. It uses recent, nationally representative sample
data from the Chinese General Social Survey (2013). We use a
probit regression model to investigate whether the pension insurance
converge rate affects the probability of a person becoming
an entrepreneur. We find that the presence of both basic pension
and business pension insurance reduce individual entrepreneurial
probability. We also find that the two types of pension insurance
do not appear to increase entrepreneurship among any particular
subgroup, based on geo graphical regions, gender, education,
social connection or marital status. Moreover, we argue that the
basic pension and business pension insurance actually have a
negative effect on the probability of small business entrepreneurship.
Even, we have found there seems to be one important
exception to this general pattern. For, most importantly, basic
pension and business pension insurance have a positive effect on
the probability of one particular kind of entrepreneurship:
Innovation-driven entrepreneurship. Exploring possible mechanisms,
we find that the important transmission channels through
which pension insurance affects business creation is the lack of
security and total family income.

Keywords

Entrepreneurs; pension insurance; job lock; innovation-driven entrepreneurship

Hrčak ID:

310044

URI

https://hrcak.srce.hr/310044

Publication date:

1.9.2023.

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