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               Income Effect, Development Characteristics and Group
                          Disparity of Self鄄employment in China



                                            ZHANG Li
            (School of Economics and Business Administration, Beijing Normal University, Beijing 100875, China)


       Abstract: Self鄄employment has both functions in increasing employment and raising income. Applying Propensity Score
   Matching method with CHIP2002 and CHIP2013 data, this paper estimates the income effect of self鄄employment in China. The
   research finds that: (1) self鄄employed workers generally earn a wage premium; (2) the earning premium for self鄄employment is
   obviously higher in 2013 than in 2002; (3) self鄄employed workers with urban hukou earn a higher premium than those with rural
   hukou, not only in absolute amount but also in increase range; (4) as to successful self鄄employment, employers earn a much
   higher premium than non鄄employers; (5) the education level and the amount of start鄄up capital are key to successful self鄄employ鄄
   ment. Accordingly, various measures are taken to help laborers who are willing to start business and realize self鄄employment, es鄄
   pecially increasing the training of human capital and the fund support in start鄄up capital to help them develop into successful self鄄
   employment. These are both beneficial to improve the income of Chinese laborers and to realize the policy goal of improving em鄄
   ployment quality in China.
       Key Words: self鄄employment; income effect; Propensity Score Matching method; disparity between urban and rural hukou;
   employment quality
                                                                          (本文责编摇 王摇 轶)


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