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Regional unemployment, self-employment and family background

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Author Info
Hannu Tervo

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Abstract

This paper analyses the role of regional unemployment on self-employment. The paper argues that family background separates individuals with respect to the effect of unemployment. The empirical analysis is based on data on a sample of Finnish residents aged 0--14 years in 1970 whose subsequent employment is examined. The results show that high unemployment in a region pushes individuals from self-employed families into self-employment, while it has the opposite effect on individuals from wage earner families. The push effect seems to work only among those individuals who already have entrepreneurial skills through their family background.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 9 (May)
Pages: 1055-1062
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1055-1062

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Martinez-Granado, Maite, 2002. "Self-Employment and Labour Market Transitions: A Multiple State Model," CEPR Discussion Papers 3661, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Meager, Nigel, 1992. " Does Unemployment Lead to Self-employment?," Small Business Economics, Springer, vol. 4(2), pages 87-103, June.
  3. Usitalo, Roope, 2001. "Homo Entreprenaurus?," Applied Economics, Taylor and Francis Journals, vol. 33(13), pages 1631-38, October. [Downloadable!] (restricted)
  4. Carrasco, R., 1997. "Transitions to and from Self-Employment in Spain: An Empirical Analysis," Papers 9710, Centro de Estudios Monetarios Y Financieros-.
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  5. Hannu Tervo, 2004. "Self-employment dynamics in rural and urban labour markets," ERSA conference papers ersa04p396, European Regional Science Association. [Downloadable!]
  6. Hannu Niittykangas & Hannu Tervo, 2005. "Spatial variations in intergenerational transmission of self-employment," Regional Studies, Taylor and Francis Journals, vol. 39(3), pages 319-332, May. [Downloadable!] (restricted)
  7. Ritsila, Jari & Tervo, Hannu, 2002. " Effects of Unemployment on New Firm Formation: Micro-level Panel Data Evidence from Finland," Small Business Economics, Springer, vol. 19(1), pages 31-40, August. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hannu Tervo & Mika Haapanen, 2006. "Gender Differences in Self-Employment in Finnish Regions," ERSA conference papers ersa06p380, European Regional Science Association. [Downloadable!]
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