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Table 3 Number of relatives 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 relatives
Instrumental variable: Log distance when first migrated
Log distance when first migrated -.1830** (.0827) -.2065*** (.0705)
Male .4974 (.6815) .4236 (.7024)
Age -.0395 (.0518) -.0264 (.0473)
Years of schooling .4508*** (.1206) .4465*** (.1188)
Married 2.4777* (1.3349) 2.5544* (1.3520)
Number of children .3035 (.5082) .1065 (.5166)
Years since first migrated out of rural area -.0001 (.0833) .0070 (.0770)
Constant Yes Yes
Home province fixed effects Yes Yes
First-stage F statistic 4.89 8.57
  Second stage
Dependent variable: = 1 if self-employed; = 0 otherwise
Number of relatives .0384* (.0230) .0316** (.0150)
Male -.0230 (.0362) -.0167 (.0313)
Age -.0049 (.0032) -.0056** (.0026)
Years of schooling -.0262** (.0104) -.0224*** (.0075)
Married .0584 (.0554) .0723* (.0432)
Number of children .0234 (.0262) .0288 (.0199)
Years since first migrated out of rural area .0091*** (.0034) .0079*** (.0027)
Constant Yes Yes
Home province fixed effects Yes Yes
No. of observations 2,379 2,336
OLS coefficient of “number of relatives” .00058 (.00060) .00058 (.00062)
  1. For regression samples, see notes below Table 2.
  2. Standard errors in parentheses are robust to heteroskedasticity and clustered at the city level.
  3. ***statistically significant at the 1 percent level; **statistically significant at the 5 percent level; *statistically significant at the 10 percent level.