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The Economic Impacts of Self-Employment

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  • Goetz, Stephan J.
  • Fleming, David A.
  • Rupasingha, Anil

Abstract

Even as self-employment continues to increase, policymakers remain largely unaware of this trend and fail to see it as an opportunity for addressing enduring joblessness. In part, this is explained by limited data on the self-employed and by widespread perceptions that returns to self-employment are low; that the self-employed are merely patching together piecemeal work opportunities requiring limited skills; and that there are no local economic impacts or spillover benefits into other sectors. Contrary to these perceptions, recent studies suggest that self-employment has tangible positive economic impacts not only on wage and salary employment but also on per capita income growth and poverty reduction. This article synthesizes the pertinent emerging literature and assesses dynamics of the lags involved between self-employment shocks and subsequent employment growth.

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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 44 (2012)
Issue (Month): 03 (August)
Pages:

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Handle: RePEc:ags:joaaec:130267

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: economic impacts; labor; rural development; self-employment; Community/Rural/Urban Development; J54; O16; R11;

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References

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  1. Steven Deller & James McConnon, 2009. "Microenterprises and economic growth: a panel study of the US states 1977-1997," Applied Economics Letters, Taylor & Francis Journals, vol. 16(13), pages 1307-1312.
  2. Adriaan J. van Stel & David J. Storey, 2004. "The link between firm births and job creation: Is there a Upas Tree effect?," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2004-33, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  3. Goetz, Stephan J. & Partridge, Mark D. & Deller, Steven C. & Fleming, David A., 2010. "Evaluating U.S. Rural Entrepreneurship Policy," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, Mid-Continent Regional Science Association, vol. 40(1).
  4. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(8), pages 961-975.
  5. Shrestha, Sundar S. & Goetz, Stephan J. & Rupasingha, Anil, 2007. "Proprietorship Formations and U.S. Job Growth," The Review of Regional Studies, Southern Regional Science Association, Southern Regional Science Association, vol. 37(2), pages 146-68.
  6. Stephan J. Goetz & David L. Debertin, 2001. "Why Farmers Quit: A County-Level Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 83(4), pages 1010-1023.
  7. Anil Rupasingha & Stephan J. Goetz, 2013. "Self-employment and local economic performance: Evidence from US counties," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 141-161, 03.
  8. David A. Fleming & Stephan J. Goetz, 2011. "Does Local Firm Ownership Matter?," Economic Development Quarterly, , vol. 25(3), pages 277-281, August.
  9. Scott Loveridge & Denys Nizalov, 2007. "Operationalizing the Entrepreneurial Pipeline Theory: An Empirical Assessment of the Optimal Size Distribution of Local Firms," Economic Development Quarterly, , vol. 21(3), pages 244-262, August.
  10. Zoltan Acs & Pamela Mueller, 2006. "Employment effects of business dynamics: Mice, Gazelles and Elephants," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2006-23, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  11. Stephan J Goetz & Mark D Partridge & Dan S Rickman & Shibalee Majumdar, 2011. "Sharing the gains of local economic growth: race-to-the-top versus race-to-the-bottom economic development," Environment and Planning C: Government and Policy, Pion Ltd, London, Pion Ltd, London, vol. 29(3), pages 428-456, June.
  12. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, Springer, vol. 30(1), pages 1-14, January.
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Cited by:
  1. Giuliano Guerra & Roberto Patuelli, 2012. "The Role of Job Satisfaction in Transitions into Self-Employment," Working Paper Series, The Rimini Centre for Economic Analysis 63_12, The Rimini Centre for Economic Analysis, revised Jul 2014.
  2. Fannin, James Matthew, 2012. "Discussion: Economic Opportunities in Rural Communities," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 44(03), August.

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