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Returning Entrepreneurship and Subjective Well-Being: Evidence from Migrant Worker Households in Rural China

Author

Listed:
  • Binhui Wei

    (South China Agricultural University)

  • Chunkai Zhao

    (South China Agricultural University
    Rural Revitalization Laboratory, South China Agricultural University)

  • Mingzhong Luo

    (South China Agricultural University
    Rural Revitalization Laboratory, South China Agricultural University)

Abstract

This study investigates the impact of returning entrepreneurship on the subjective well-being (SWB) of migrant worker households (MWHs) in rural China. Our findings confirm the happiness-enhancing effect of returning entrepreneurship using the policy shock from the returning entrepreneurship demonstration county and employing a staggered difference-in-differences (DID) approach. To ensure the reliability of the staggered DID estimates, the main results are supported by a series of robustness tests such as the Bacon decomposition, the exclusion of spillover effects, and alternative specifications. Moreover, we find that this positive effect stems from increased work satisfaction, expanded social capital, and enhanced quality of life. Also, some specific entrepreneurial forms, including engaging in the non-farm sector, survival entrepreneurship, and informal entrepreneurship, may create more SWB for MWHs in rural China. Furthermore, support from the institutional environment and core entrepreneurial elements help to amplify the positive happiness effect of returning entrepreneurship among MWHs. Our study provides new evidence in the research field on entrepreneurial well-being and reveals the positive role of entrepreneurship in enhancing the welfare of rural MWHs in China.

Suggested Citation

  • Binhui Wei & Chunkai Zhao & Mingzhong Luo, 2025. "Returning Entrepreneurship and Subjective Well-Being: Evidence from Migrant Worker Households in Rural China," Journal of Happiness Studies, Springer, vol. 26(3), pages 1-45, March.
    • Handle: RePEc:spr:jhappi:v:26:y:2025:i:3:d:10.1007_s10902-025-00867-7
    DOI: 10.1007/s10902-025-00867-7
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    Keywords

    Returning entrepreneurship; Subjective well-being; Migrant worker households; Rural China;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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