Entrepreneurship and subjective wellbeing in China: Exploring linkages and potential channels

Abstract

We analyse the effect of entrepreneurship on subjective wellbeing in China. To do so, we use four waves of the nationally representative China Family Panel Studies (CFPS) longitudinal survey data. Employing a suite of quasi-experimental analytical procedures, we find that being an entrepreneur increases subjective wellbeing in China. Our estimates suggest that being an entrepreneur results in a 0.46 standard deviation higher subjective wellbeing than not being an entrepreneur. This finding is robust to different quasi-experimental methods. We also find that entrepreneurship enhances subjective wellbeing more among males and rural residents. Results on mediation analysis suggests that social and economic status are important channels through which entrepreneurship influences subjective wellbeing.