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Explaining Regional Variations in Entrepreneurship as Multiple Occupational Equilibria

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  • Simon C. Parker

Abstract

The paper proposes a human capital-based model of choice between paid employment and entrepreneurship that can give rise to multiple equilibria in occupational structure. The model is consistent with evidence of pronounced, persistent, and hitherto unexplained regional variations in entrepreneurship. Whether multiple equilibria emerge is shown to depend on the occupation-specific productivity of human capital and the costs of human and financial capital. The paper goes on to discuss the implications for governments seeking to promote entrepreneurship as a tool of regional development policy. Copyright Blackwell Publishers, 2005

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 45 (2005)
Issue (Month): 4 ()
Pages: 829-850

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Handle: RePEc:bla:jregsc:v:45:y:2005:i:4:p:829-850

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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Cited by:
  1. Peter Johnson & Simon Parker & Frits Wijbenga, 2006. "Nascent Entrepreneurship Research: Achievements and Opportunities," Small Business Economics, Springer, vol. 27(1), pages 1-4, August.
  2. Goel, A. & Vohra, Neharika & Zhang Liyan & Arora, Bhupinder, . "Attitudes of the Youth towards Entrepreneurs and Entrepreneurship: A Cross-cultural Comparison of India and China," IIMA Working Papers WP2007-01-06, Indian Institute of Management Ahmedabad, Research and Publication Department.
  3. Congregado, Emilio & Golpe, Antonio A. & Parker, Simon C., 2009. "The Dynamics of Entrepreneurship: Hysteresis, Business Cycles and Government Policy," IZA Discussion Papers 4093, Institute for the Study of Labor (IZA).
  4. Yvonne von Friedrichs & Hakan Boter, 2009. "Meeting Radical Change and Regional Transition: Regional Closedowns and the Role of Entrepreneurship," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(2), pages 99-122.
  5. Sherrill Shaffer & Iftekhar Hasan & Mingming Zhou, 2008. "New Small Firms And Dimensions Of Economic Performance," CAMA Working Papers 2008-24, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  6. N.S. Bosma & F.G. van Oort, 2012. "Agglomeration Economies, Inventors and Entrepreneurs as Engines of European Regional Productivity," Working Papers 12-20, Utrecht School of Economics.
  7. Frank Oort & Niels Bosma, 2013. "Agglomeration economies, inventors and entrepreneurs as engines of European regional economic development," The Annals of Regional Science, Springer, vol. 51(1), pages 213-244, August.

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