Housing Reform Impose Upon Entrepreneurial ChoiceNov. 26,2015
The period since 1980s has witnessed three typical stages of housing reform in China, namely, raising the rent and promoting sales by leasing; selling at low price, renting and selling simultaneously; and the monetization of housing allocation. The essence of such a housing reform in fact is the process of privatization of the once publicly-owned houses and commercialization of housing. Citizens obtain corresponding assets when getting their private housing. Worthy of being mentioned is a fact that during the reform process, private economy gradually consolidates its position in national economy when a large number of staff members of state-owned businesses choose to start businesses and become an important part of private economy.
What influences does the liquidity constraint change with housing reform impose upon entrepreneurial choice of those who start businesses?
Professor ZHOU Jingkui from Institute of Economic Studies, Nankai University and his team member explored the influences of housing reform on such entrepreneurial choice during the economic transformation by using survey date on urban dwellers. They constructed a two-phase model containing liquidity constraint and offers an analysis on influences of liquidity constraint represented by housing reform upon entrepreneurial choice.
The study result shows that housing reform increases the entrepreneurship rate of employees through decreasing liquidity constraint, and possess typical features of the presence of both short- and long-term effects; housing reform has influenced the entrepreneurial choice of staff and workers who possess significant professional skills, work in a governmental organizations, or own intermediate professional titles greater than that of other types of staff and workers or family.
The research findings are published in the 3th issue of Economic Research Journal, 2015. The bilingual version will be launched in the near future.