Education, Age Cohort, and The Status Quo of Microentrepreneurs: Evidence from Chinese "Double Innovation" Reform

Sammanfattning: This paper examines the effectiveness of the Chinese "Double Innovation" Reform and "Entrepreneurship Leading" Policy on labor outcomes using Chinese Family Panel Studies (CFPS) from 2010 to 2020. The study employs fuzzy regression discontinuity design and difference-in-difference models to analyze their effects on high educational degrees, self-employment, and salaried employment. Findings show that the Chinese "Double Innovation" Reform is ineffective in motivating young cohorts to become microentrepreneurs, while the "Entrepreneurship Leading" Policy has a short-term effect rather than being effective for a long period in encouraging young cohorts who also have tertiary educational degrees to be self-employed. Finally, the paper contributes empirical insights and explores mechanisms, providing a foundation for future policy research at the same time.