Self-Employment and Geographical Mobility in Germany
AbstractLittle is known about the individual location behaviour of self-employed entrepreneurs. This paper investigates the geographical mobility behaviour of self-employed entrepreneurs, as compared to employees, thereby shedding new light onto the place embeddedness of self-employment. It examines whether self-employed entrepreneurs are "rooted" in place and also whether those who are more rooted in place are more likely to enter self-employment. The paper draws on large-scale panel data covering the years 1996-2009 from the German Socio-Economic Panel Study (SOEP). It shows that self-employed entrepreneurs as compared to employeesare not more "rooted" in their place of residence and that those who are more rooted in their place of residence are not more likely to become self-employed. However, in contrast to expectations drawn from previous literature, flows into self-employment are positively associated with inter-regional moves. It concludes that a longitudinal perspective on individual employment careers provides an important methodological advance. In addition, it emphasises the importance of mobility and immobility and individual and household constraints and preferences for understanding who becomes self-employed.
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Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 417.
Length: 28 p.
Date of creation: 2011
Date of revision:
Self-employment; migration; moves; panel data; SOEP; Germany;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- 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
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-03 (All new papers)
- NEP-ENT-2012-01-03 (Entrepreneurship)
- NEP-EUR-2012-01-03 (Microeconomic European Issues)
- NEP-GEO-2012-01-03 (Economic Geography)
- NEP-MIG-2012-01-03 (Economics of Human Migration)
- NEP-URE-2012-01-03 (Urban & Real Estate Economics)
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