Intra-Family Relationship and Female Entrepreneurship

64 Pages Posted: 3 Nov 2020 Last revised: 2 Feb 2022

See all articles by Tse-Chun Lin

Tse-Chun Lin

The University of Hong Kong - Faculty of Business and Economics

Mingzhu Tai

The University of Hong Kong, Faculty of Business and Economics

Date Written: September 14, 2020

Abstract

We study how the intra-family relationship affects female entrepreneurship. By utilizing a major change in marriage law in the U.S., we find that female entrepreneurship increases significantly when the divorce regime changes from mutual consent to unilateral, especially when property rights are more favorable to women. This effect is mainly from an increase in the survival of existing female entrepreneurs rather than the entry of previous housewives. We consider a variety of potential mechanisms and conclude that the increase in female entrepreneurship after the law change is most likely driven by an increase in women’s intra- family bargaining power against spouses.

Keywords: Female Entrepreneurship, Intra-household Bargaining Power, Marriage Law

JEL Classification: D10; G59; J12; J16; L26; G30

Suggested Citation

Lin, Tse-Chun and Tai, Mingzhu, Intra-Family Relationship and Female Entrepreneurship (September 14, 2020). Available at SSRN: https://ssrn.com/abstract=3692274 or http://dx.doi.org/10.2139/ssrn.3692274

Tse-Chun Lin (Contact Author)

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Mingzhu Tai

The University of Hong Kong, Faculty of Business and Economics ( email )

8th Floor Kennedy Town Centre
23 Belcher's Street
Kennedy Town
Hong Kong

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