The Influence Of Human Capital On The Choice Of Family Entrepreneurship In Urban And Rural Areas

This paper analyzes the influence of human capital on the choice of family entrepreneurship in urban and rural areas from both theoretical and empirical perspectives.In theory,this paper analyzes the mechanism.Education investment affects family entrepreneurship by affecting the quality of family human capital,the identification of family entrepreneurship opportunities and the success rate of entrepreneurship;health investment affects family entrepreneurship by affecting family birth rate and fertility rate,household consumption decision-making,and household labor supply;financial knowledge It affects family entrepreneurship by affecting household savings investment behavior,participation in family entrepreneurship activities,and household asset allocation.In the empirical aspect,using the CFPS2016 data,this paper empirically tests the relationship by constructing a binary probit model.The results show that the improvement of human capital has a positive effect on the choice of urban and rural family entrepreneurship.The higher the education period of rural household respondents,the greater the increase in the probability of family entrepreneurship,and urban families have a maximum number of years of education,making the probability of family entrepreneurship to the maximum.When the respondents' physical health and financial knowledge were similar,the entrepreneurial probability of rural households was higher than that of urban households,which was 1.8% and 1.4% higher respectively.This paper argues that the emergence of this difference is caused by urban-oriented education supply,urban-oriented medical supply,urban-rural dual financial structure,the urban-rural dual household registration system itself and the employment discrimination caused by it.Finally,combining the conclusions of theory and empirical researches,this paper proposes the following policy recommendations: rebuilding the system of equal employment opportunities,deepening the reform of household registration System,promoting the extension of financial services to rural areas,and increasing investments in education and health in rural areas.