A1 Refereed original research article in a scientific journal
Deviant response: The effect of income inequality on informal entrepreneurship in emerging economies
Authors: Wei, Shihao; Boudreaux, Christopher; Su, Zhongfeng; Wu, Zhan; Stenholm, Pekka
Publisher: Springer Science+Business Media
Publication year: 2026
Journal: Small Business Economics
ISSN: 0921-898X
eISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-025-01160-w
Publication's open availability at the time of reporting: No Open Access
Publication channel's open availability : Partially Open Access publication channel
Web address : https://doi.org/10.1007/s11187-025-01160-w
Drawing on anomie theory, this study examines how income inequality affects informal entrepreneurship in emerging economies. Using a sample of 6,143 new ventures across 34 emerging economies over the period of 2012 to 2013, we find that income inequality encourages informal entrepreneurship, and this relationship is weaker for entrepreneurs with greater general human capital, financial capital, and partnerships. This study enhances our understanding of the social incentives for informal entrepreneurship and how the role of income inequality in informal entrepreneurship varies with entrepreneurs’ access to resources. Moreover, we also advance anomie theory by extending its application beyond traditional deviant behaviors.
Funding information in the publication:
Shihao Wei acknowledges support from the National Natural Science Foundation of China (Grant No. 72502105). Zhongfeng Su acknowledges support from the Humanities and Social Sciences Research Foundation of the Ministry of Education of China (Grant No. 25YJA630070). Zhan Wu acknowledges support from the National Natural Science Foundation of China (Grant No. 72372117).
