Residents' Entrepreneurial Behaviour from the Perspective of Happiness Economics: Evidence from China

Zhou Shuo; Jin Xingye; Fu Lin; Li Tao

Abstract: This paper uses data from the China Family Panel Studies (CFPS) of 2010, 2012, 2014 and 2016, to empirically analyse the entrepreneurial behaviour of Chinese people from the perspective of happiness economics. The results show that citizens' entrepreneurial behaviour has a significant negative impact on life satisfaction. If so, why do people still choose to start a business? Further analysis indicates that entrepreneurial behaviour has significant positive impacts on job satisfaction and happiness. In-depth analysis also reveals that greater subjective economic status, more optimistic expectations for the future and more social capital within the groups, can help to mitigate the entrepreneurial behaviour's negative impact on life satisfaction. The findings of this paper not only explain people's entrepreneurial choices from the perspective of happiness economics，but also provide useful support to improve entrepreneurs' life satisfaction and encourage entrepreneurial policy making.

Published online by the Journal of World Economy.