Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 18, 2022 erstellt
Description:
We study the impacts of relaxing internal migration barriers on entrepreneurship by exploiting China’s 2014 nationwide hukou reforms and the administrative firm registry. Our difference-in-differences estimation finds that treated counties meet sizable increases in entrepreneurial activities relative to counties without reforms. The effect is most prominent in establishments of firms with a smaller scale and a lower likelihood of survival, indicating moderate expansions in labor demand. Migrant workers’ wages decline and entrepreneurial activities improve most in labor-intensive industries, implying that increased labor supplies serve as one underlying mechanism. Our findings highlight the important role that removing domestic labor market frictions plays in promoting entrepreneurship