The Effect Of Household Registration Threshold On The Entrepreneurship Of Floating Population

Mass entrepreneurship is an important way to relieve the pressure of urban unemployment and promote national economic growth.Floating population,with new knowledge from different regions,is essential to stimulating the vitality of urban entrepreneurship and promoting the diversification of entrepreneurial levels and structures.However,the household registration system inhibits the free movement of the population.Although the pace of household registration reform has been unstoppable in recent years,the qualification for settlement in large cities such as Beijing are still very hard to get.Some scholars have already paid attention to the effect of household registration on entrepreneurship.However,the existing literature only discusses the differences in the entrepreneurial probability of individuals with urban and rural household registration and local and non-local household registration.From the perspective of the difficulty of getting official permission for settlement,this thesis aims to explain the impact of household registration threshold on the entrepreneurship of floating population and the.mechanism between the two,and then provide guidance for guiding floating population to start a business.First,by establishing the occupational choice model of the floating population,this thesis decomposes the impact of the household registration threshold on the entrepreneurship of the floating population into a negative knowledge spillover effect and a positive household registration discrimination effect.This thesis argues that the rising household registration threshold hinders the free flow of population between cities,thereby inhibiting the spillover and diffusion of knowledge,which is detrimental to the discovery of entrepreneurial opportunities,thereby forming a path with "knowledge spillover" as the core,transmitting along the "rising household registration threshold→inhibiting knowledge spillover→ declining opportunities for entrepreneurship→reducing entrepreneurship";on the other hand,the rise in household registration threshold household registration discrimination suffered by the floating population in the labor market,who is forced to start a business because they cannot find a job.It forms another path with "household registration discrimination" as the core,transmitting along "rising household registration threshold → increasing household registration discrimination → rising unemployment rate → increasing entrepreneurship".The direction of the impact of the household registration threshold on the entrepreneurship of floating population depends on the relative magnitude of the negative knowledge spillover effect and the positive household registration discrimination effect.In the empirical part,this thesis first incorporates the willingness of the floating population to settle in the calculation process,constructs the household registration threshold index data of 227 prefecture-level cities,including municipalities directly under the Central Government.The results show that the cities with higher household registration threshold index are mainly first-tier cities and some developed cities in Pearl River Delta and the Yangtze River Delta.Secondly,based on the data from China Migrants Dynamic Survey in 2012,this thesis discusses the impact of the household registration threshold on the floating population’s entrepreneurial choices.The empirical results show that the household registration threshold significantly inhibits the entrepreneurial probability of the floating population,and the knowledge spillover effect of the settlement threshold is dominant in the two effects.After subdividing entrepreneurial activities into necessity entrepreneurship and opportunity entrepreneurship,the inhibitory effect of the settling threshold remains stable.In order to further verify the knowledge spillover mechanism and the household registration discrimination mechanism,this thesis introduces the interaction item between the household registration threshold and the level of urban informatization,as well as the interaction item between the household registration threshold and the flowing distance.The empirical findings show that cities with high levels of informatization are relatively less restrained by the household registration threshold;cross-provincial migrants are more likely to be discriminated against by household registration and forced to choose to start businesses than cross-county migrants within the province,which further verifies the existence of both knowledge spillover mechanism and household registration discrimination mechanism.