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Air Pollution and Entrepreneurship

Author

Listed:
  • Guo, Liwen
  • Cheng, Zhiming
  • Tani, Massimiliano
  • Cook, Sarah
  • Zhao, Jiaqi
  • Chen, Xi
Abstract
We examine the causal effect of air pollution on an individual's propensity for entrepreneurship in China. Our preferred model, which employs an instrumental variable approach to address endogeneity arising from sorting into entrepreneurship and locational choices, suggests that exposure to higher intensity of air pollution lowers one's proclivity for entrepreneurship. We also find that industrial activity and self-efficacy mediate the relationship between air pollution and entrepreneurship. In addition, education and gender further moderate the relationship between air pollution and self-efficacy. In particular, air pollution negatively affects self-efficacy among the less-educated and females.

Suggested Citation

  • Guo, Liwen & Cheng, Zhiming & Tani, Massimiliano & Cook, Sarah & Zhao, Jiaqi & Chen, Xi, 2022. "Air Pollution and Entrepreneurship," GLO Discussion Paper Series 1196, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1196
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    More about this item

    Keywords

    Air pollution; Entrepreneurship; China;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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