Table 2 Number of friends and choice of self-employment, 2SLS Regressions
From: Social-family network and self-employment: evidence from temporary rural–urban migrants in China
(1) | (2) | |||
|---|---|---|---|---|
Sample C | Sample D | |||
First stage | ||||
Endogenous independent variable: Number of friends | ||||
Instrumental variable: Log distance when first migrated | ||||
Log distance when first migrated | -.5271*** | (.1802) | -.5584*** | (.1873) |
Male | 3.4932*** | (1.4230) | 3.4404** | (1.4714) |
Age | -.2555*** | (.0862) | -.2499*** | (.0787) |
Years of schooling | 1.5546*** | (.2726) | 1.5806*** | (.2776) |
Married | -.5510 | (1.9689) | -.4040 | (2.0111) |
Number of children | .2496 | (.6306) | .1399 | (.6755) |
Years since first migrated out of rural area | .0613 | (.1471) | .0557 | (.1490) |
Constant | Yes | Yes | ||
Home province fixed effects | Yes | Yes | ||
First-stage F statistic | 8.56 | 8.89 | ||
Second stage | ||||
Dependent variable: = 1 if self-employed; = 0 otherwise | ||||
Number of friends | .0133** | (.0058) | .0117** | (.0049) |
Male | -.0505 | (.0331) | -.0435 | (.0304) |
Age | -.0030 | (.0025) | -.0036 | (.0022) |
Years of schooling | -.0296*** | (.0100) | -.0268*** | (.0090) |
Married | .1608*** | (.0383) | .1577*** | (.0362) |
Number of children | .0318* | (.0177) | .0305** | (.0151) |
Years since first migrated out of rural area | .0083*** | (.0028) | .0071*** | (.0024) |
Constant | Yes | Yes | ||
Home province fixed effects | Yes | Yes | ||
No. of observations | 2,379 | 2,336 | ||
OLS coefficient of “number of friends” | .00039* | (.00024) | .00041* | (.00023) |