Inequality of opportunity and mass incidents: Evidence from China

Zhou, Guosheng; Liu, Lizhong; Song, Yang

doi:10.1111/ecot.12313

Cited by 4 publications

(2 citation statements)

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“…‘Circumstances’ include features that are pre‐determined and cannot be altered by individuals, including innate characteristics, family and social environment at birth. Personal choices, on the other hand, refer to things that can be changed through efforts, such as educational attainment, occupational decisions and length of work (Zhou et al., 2022). As such, income inequality stemming from differences in circumstances may hurt morality and discourage efforts, while inequality due to different levels of efforts incentivises people to work harder (Emerson & Knabb, 2005; Ferreira & Gignoux, 2011; Marrero & Rodriguez, 2013; Song & Zhou, 2019).…”

Section: Introductionmentioning

confidence: 99%

The effect of inequality of opportunity on entrepreneurship: Evidence from China

Zhou,

Liu

2023

World Economy

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Despite the rich literature on income inequality, its impact on entrepreneurship is inconclusive, especially regarding the effect of different structures of inequality. In this research, we endeavour to explain such a phenomenon by formalising the inequality of opportunity. Utilising micro‐level data from China, we argue that it is inequality of opportunity that is negatively correlated with people's engagement in entrepreneurship, and this conclusion is consistent under a series of robustness checks. Our heterogeneity analysis indicates that the association between inequality of opportunity and entrepreneurship is stronger for self‐employment than for bigger‐scale private companies. It is also the strongest in regions with the lowest GDP per capita, the lowest fiscal expenditures and the smallest tertiary sector. These results suggest that economic development quality, economic structure and public service are important factors that influence the correlations between inequality of opportunity (IO) and entrepreneurial activities. Finally, we seek to understand the channels through which IO may be linked to entrepreneurship. Our results find that IO may discourage engagement in entrepreneurship by depressing human capital accumulation, access to credit, social capital and risk taking.

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Section: Introductionmentioning

confidence: 99%

The effect of inequality of opportunity on entrepreneurship: Evidence from China

Zhou,

Liu

2023

World Economy

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“…In (Zhou et al., 2022), the following error was published on page 465. Affiliation of first author was incorrectly published as Yang Song School of Economics, Renmin University of China, Beijing, China …”

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confidence: 99%