Testing the 'Residential Rootedness': Hypothesis of Self-Employment for Germany and the UK
AbstractBased on the notion that entrepreneurship is a 'local event' , the literature argues that selfemployed workers and entrepreneurs are 'rooted' in place. This paper tests the 'residential rootedness'-hypothesis of self-employment by examining for Germany and the UK whether the self-employed are less likely to move or migrate than employees. Using longitudinal data from the German Socio-economic Panel Study (SOEP) and the British Household Panel Survey (BHPS) and accounting for transitions in employment status we found little evidence that the self-employed in Germany and the UK are more rooted in place than employees. Firstly, the self-employed are not less likely to move or migrate over the period 2001-08. Secondly, those who are currently self-employed are also not more likely to have remained in the same place over a period of three years (2008-06 and 2005-03) as compared to those who are currently employed. Thirdly, those who are continuously self-employed are not less likely to have moved or migrated over a 3-period than those in continuous paid employment. Fourthly, in contrast to the prevalent 'residential rootedness'-hypothesis in economic geography and regional studies, we found that the entry into and the exit from selfemployment are associated with internal migration.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 413.
Length: 18 p.
Date of creation: 2011
Date of revision:
Self-employment; migration; residential mobility; rootedness hypothesis; UK; Germany;
Other versions of this item:
- Darja Reuschke & Maarten van Ham, 2013. "Testing the ‘residential rootedness’ hypothesis of self-employment for Germany and the UK," Environment and Planning A, Pion Ltd, London, vol. 45(5), pages 1219-1239, May.
- Reuschke, Darja & van Ham, Maarten, 2011. "Testing the 'Residential Rootedness'-Hypothesis of Self-Employment for Germany and the UK," IZA Discussion Papers 6062, Institute for the Study of Labor (IZA).
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-19 (All new papers)
- NEP-BEC-2011-12-19 (Business Economics)
- NEP-ENT-2011-12-19 (Entrepreneurship)
- NEP-MIG-2011-12-19 (Economics of Human Migration)
- NEP-URE-2011-12-19 (Urban & Real Estate Economics)
You can help add them by filling out this form.
reading lists or Wikipedia pages:Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If references are entirely missing, you can add them using this form.