Employment Effect of Entrepreneurial Activity in China’s Private Economy

This paper presents an extension to the empirical research of Fritsch and Mueller (2008) investigating how entrepreneurial activity affects employment in China’s private economy. Both static and dynamic effects are analyzed using data from 31 Chinese provinces during the 2000 to 2008 period. The main findings are as follows: (1) entrepreneurial activity makes a considerable contribution to job creation, (2) an S-shaped dynamic pattern of job creation effect due to entrepreneurial activity is observed to be similar to that found by previous research, and (3) the employment effect of entrepreneurial activity differs according to business type and region