Tradeoff between Entrepreneurship and Lineage: Evidence from China’s Nationwide Two-Child Policy
Prof. Seungjoon Oh
Tenured Associate Professor in Finance,
Peking University HSBC Business School (PHBS)
Date: 13 May 2025 (Tuesday)
Time: 10:30-12:00
Venue: E22-G015
Host: Prof. Rachel Xiaorong MA, Associate Professor in Finance
Abstract
We study the impact of China’s nationwide two-child policy on households’ entrepreneurial decision-making. Employing a difference-in-differences approach, we find a decreased (increased) likelihood of entrepreneurial participation (birth) in households with a married woman aged 20 to 40. This tradeoff can attribute to family risk consideration such as lowered revealed risk preference upon the experience of recent childbirth, intra-household risk-sharing, entrepreneurial income risk, and housing wealth. Furthermore, we find strong policy effect on families whose first child is a daughter due to son preference. Our empirical evidence highlights that demographic policies can give rise to unintended consequences in the determent of entrepreneurship.
Speaker
Prof. Seungjoon Oh is a tenured Associate Professor at Peking University’s HSBC Business School. He holds a Ph.D. in Finance from the University of Michigan. His research focuses on entrepreneurial finance, corporate innovation, corporate governance, venture capital, and more. His work has been published in journals such as The Accounting Review, Journal of Financial and Quantitative Analysis, and Journal of Financial Intermediation.
All are welcome!
