Wealth Inequality, Financial Marketization and Entrepreneurship—An Empirical Study Based on the Data from CFPS

Based on the data from the China Family Panel Studies (CFPS), this paper empirically examines the impact of the wealth inequality in a region on the entrepreneurial choices of local families at the micro level, and investigates how financial marketization affects the role of wealth inequality on entrepreneurship. The research findings are as follows. First, the influence of wealth inequality on family entrepreneurship depends on the type of entrepreneurship and the wealth condition of the family. If the wealth gap widens, the wealth advantage of the wealthy will be enhanced, which can promote the corporate entrepreneurship; meanwhile, the financing constraints on poor and common families will be strengthened, which can inhibit the occasional self-employment entrepreneurship and subsistence self-employment entrepreneurship. Second, the advancement of financial marketization can alleviate the negative impact of wealth inequality on the common households. Therefore, we should further deepen the reform of financial marketization, improve the market financing environment, lower the entrepreneurial thresholds, and provide equal entrepreneurial opportunities for all families.