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 and relatives | ||||
Instrumental variable: Log distance when first migrated | ||||
Log distance when first migrated | -.7100*** | (.2250) | -.7649*** | (.2244) |
Male | 3.9906** | (2.0197) | 3.8640* | (2.0818) |
Age | -.2950** | (.1186) | -.2763*** | (.1039) |
Years of schooling | 2.0055*** | (.3283) | 2.0271*** | (.3328) |
Married | 1.9267 | (3.1141) | 2.1503 | (3.1628) |
Number of children | .5531 | (.9718) | .2464 | (1.0412) |
Years since first migrated out of rural area | .0612 | (.2045) | .0487 | (.1980) |
Constant | Yes | Yes | ||
Home province fixed effects | Yes | Yes | ||
First-stage F statistic | 9.96 | 11.62 | ||
Second stage | ||||
Dependent variable: = 1 if self-employed; = 0 otherwise | ||||
Number of friends and relatives | .0099** | (.0044) | .0085** | (.0035) |
Male | -.0434 | (.0334) | -.0363 | (.0298) |
Age | -.0035 | (.0026) | -.0041* | (.0022) |
Years of schooling | -.0288*** | (.0093) | -.0256*** | (.0080) |
Married | .1344*** | (.0369) | .1347*** | (.0342) |
Number of children | .0296 | (.1802) | .0300* | (.0154) |
Years since first migrated out of rural area | .0085*** | (.0028) | .0073*** | (.0023) |
Constant | Yes | Yes | ||
Home province fixed effects | Yes | Yes | ||
No. of observations | 2,379 | 2,336 | ||
OLS coefficient of “number of friends and relatives” | .00032 | (.00019) | .00033* | (.00019) |