IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp15059.html
   My bibliography  Save this paper

Living in Rural Areas and Self-Employment

Author

Listed:
  • Belloc, Ignacio

    (University of Zaragoza)

  • Molina, José Alberto

    (University of Zaragoza)

  • Velilla, Jorge

    (University of Zaragoza)

Abstract

This paper examines whether workers living in rural areas are more likely to be self-employed, compared with those in urban areas. We provide evidence for 35 European countries, using the European Working Conditions Survey for the year 2015. We also study the time devoted to market work, and monthly earnings, of self-employed workers in rural and urban areas. Results show that workers in rural areas are more likely to be self-employed than workers in urban areas, although engaging in self-employment in rural areas is associated with significantly lower monthly incomes. We also report differences by welfare state regime. Self-employment is considered a key mechanism to compensate for the difficulty of developing in rural areas, and this paper shows that workers in rural areas in Europe are more likely to be self-employed, despite more challenging working conditions.

Suggested Citation

  • Belloc, Ignacio & Molina, José Alberto & Velilla, Jorge, 2022. "Living in Rural Areas and Self-Employment," IZA Discussion Papers 15059, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15059
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp15059.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alicia Coduras & Jorge Velilla & Raquel Ortega, 2018. "Age of the entrepreneurial decision: Differences among developed, developing, and non- developed countries," Economics and Business Letters, Oviedo University Press, vol. 7(1), pages 36-46.
    2. Sjoerd Beugelsdijk & Niels Noorderhaven, 2004. "Entrepreneurial attitude and economic growth: A cross-section of 54 regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 199-218, June.
    3. Carla Canelas & Silvia Salazar, 2014. "Gender and ethnic inequalities in LAC countries," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-15, December.
    4. Joern H. Block & Christian O. Fisch & Mirjam van Praag, 2017. "The Schumpeterian entrepreneur: a review of the empirical evidence on the antecedents, behaviour and consequences of innovative entrepreneurship," Industry and Innovation, Taylor & Francis Journals, vol. 24(1), pages 61-95, January.
    5. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
    6. Robert Fairlie & Alicia Robb, 2009. "Gender differences in business performance: evidence from the Characteristics of Business Owners survey," Small Business Economics, Springer, vol. 33(4), pages 375-395, December.
    7. David Audretsch & Max Keilbach, 2004. "Entrepreneurship and regional growth: an evolutionary interpretation," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 605-616, December.
    8. Brixiová, Zuzana & Ncube, Mthuli & Bicaba, Zorobabel, 2015. "Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland," World Development, Elsevier, vol. 67(C), pages 11-26.
    9. Pedro Albarran & Raquel Carrasco & Maite Martinez‐Granado, 2009. "Inequality for Wage Earners and Self‐Employed: Evidence from Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(4), pages 491-518, August.
    10. Klaus Desmet & Marcel Fafchamps, 2005. "Changes in the spatial concentration of employment across US counties: a sectoral analysis 1972--2000," Journal of Economic Geography, Oxford University Press, vol. 5(3), pages 261-284, June.
    11. Mark Aguiar & Erik Hurst, 2007. "Measuring Trends in Leisure: The Allocation of Time Over Five Decades," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 969-1006.
    12. Ali˙ye A. Akgün & Tüzi˙n Baycan-Levent & Peter Nijkamp & Jacques Poot, 2011. "Roles of Local and Newcomer Entrepreneurs in Rural Development: A Comparative Meta-analytic Study," Regional Studies, Taylor & Francis Journals, vol. 45(9), pages 1207-1223, February.
    13. Carla Canelas & Silvia Salazar, 2014. "Gender and Ethnic Inequalities in LAC Countries," Post-Print halshs-00973891, HAL.
    14. David Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 949-959.
    15. Carla Canelas & Silvia Salazar, 2014. "Gender and Ethnic Inequalities in LAC Countries," Documents de travail du Centre d'Economie de la Sorbonne 14021r, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Jul 2014.
    16. Congregado, Emilio & Golpe, Antonio A. & Carmona, Mónica, 2010. "Is it a good policy to promote self-employment for job creation? Evidence from Spain," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 828-842, November.
    17. Zoltan J. Acs, 1992. "Small Business Economics: A Global Perspective," Challenge, Taylor & Francis Journals, vol. 35(6), pages 38-44, November.
    18. DeMartino, Richard & Barbato, Robert, 2003. "Differences between women and men MBA entrepreneurs: exploring family flexibility and wealth creation as career motivators," Journal of Business Venturing, Elsevier, vol. 18(6), pages 815-832, November.
    19. Juan Carlos Campaña & J. Ignacio Giménez-Nadal & José Alberto Molina, 2020. "Self-employed and Employed Mothers in Latin American Families: Are There Differences in Paid Work, Unpaid Work, and Child Care?," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 52-69, March.
    20. Bego�a Cueto & Mat�as Mayor & Patricia Su�rez, 2015. "Entrepreneurship and unemployment in Spain: a regional analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 22(15), pages 1230-1235, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Belloc, Ignacio, 2022. "Emprendimiento en entornos rurales: Evidencia con la Encuesta Europea sobre Condiciones Laborales [Entrepreneurship in rural settings: Evidence from the European Working Conditions Survey]," MPRA Paper 111591, University Library of Munich, Germany.
    2. Juan Carlos Campaña & J. Ignacio Giménez-Nadal & José Alberto Molina, 2020. "Self-employed and Employed Mothers in Latin American Families: Are There Differences in Paid Work, Unpaid Work, and Child Care?," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 52-69, March.
    3. Velilla, Jorge, 2021. "Regional and national results on entrepreneurship using GEM data," MPRA Paper 110323, University Library of Munich, Germany.
    4. Gascón Salillas, Patricia, 2020. "La actividad emprendedora: Análisis transversal en la Comunidad Foral de Navarra [Entrepreneurship activity: Cross-sectional analysis in the Region of Navarra]," MPRA Paper 99386, University Library of Munich, Germany.
    5. Juan Carlos, Campaña & J. Ignacio, Giménez-Nadal & Jose Alberto, Molina, 2017. "Self-employment and educational childcare time: Evidence from Latin America," MPRA Paper 77360, University Library of Munich, Germany.
    6. Juan Carlos, Campaña & J. Ignacio, Giménez-Nadal & Jose Alberto, Molina, 2017. "Differences between self-employed and employed mothers in balancing family and work responsibilities: Evidence from Latin American countries," MPRA Paper 77964, University Library of Munich, Germany.
    7. Espino, Ilya & Hermeto, Ana & Luz, Luciana, 2020. "Gender differences in time allocation to paid and unpaid work: Evidence from Urban Guatemala, 2000-2014," MPRA Paper 106477, University Library of Munich, Germany.
    8. Sandra Ferrando-Latorre & Jorge Velilla & Raquel Ortega, 2019. "Intergenerational Transmission of Entrepreneurial Activity in Spanish Families," Journal of Family and Economic Issues, Springer, vol. 40(3), pages 390-407, September.
    9. Molina, Jose Alberto & Velilla, Jorge & Ortega, Raquel, 2016. "Entrepreneurial activity in the OECD: Pooled and cross-country evidence," MPRA Paper 71592, University Library of Munich, Germany.
    10. Campaña, Juan Carlos & Gimenez-Nadal, J. Ignacio & Molina, José Alberto, 2015. "Gender differences in the distribution of total work-time of Latin- American families: the importance of social norms," MPRA Paper 62759, University Library of Munich, Germany.
    11. Campaña, Juan Carlos & Gimenez-Nadal, José Ignacio & Molina, José Alberto, 2018. "Efficient Labor Supply for Latin Families: Is the Intra-Household Bargaining Power Relevant?," IZA Discussion Papers 11695, Institute of Labor Economics (IZA).
    12. Molina, Jose Alberto & Velilla, Jorge, 2016. "La innovación como determinante pare el emprendimiento [Innovation as determinant of entrepreneurship]," MPRA Paper 71471, University Library of Munich, Germany.
    13. Gustavo Canavire-Bacarreza & Luis C. Carvajal-Osorio, 2020. "Two Stories of Wage Dynamics in Latin America: Different Policies, Different Outcomes," Journal of Labor Research, Springer, vol. 41(1), pages 128-168, June.
    14. Sjoerd Beugelsdijk, 2010. "Entrepreneurial Culture, Regional Innovativeness and Economic Growth," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 129-154, Springer.
    15. Carla Canelas & François Gardes & Philip Merrigan & Silvia Salazar, 2019. "Are time and money equally substitutable for all commodity groups in the household’s domestic production?," Review of Economics of the Household, Springer, vol. 17(1), pages 267-285, March.
    16. Liarte Blasco, Cristian, 2020. "Determinantes del emprendimiento en Cataluña: un análisis con datos GEM [Determinants of entrepreneurship in Cataluña: an analysis with GEM data]," MPRA Paper 99389, University Library of Munich, Germany.
    17. Niels Bosma & Kashifa Suddle & Veronique Schutjens, 2008. "Whither a flat ladscape? Regional differences in Entrepreneurship in the Netherlands," Scales Research Reports H200805, EIM Business and Policy Research.
    18. Escalante Ochoa, Luis Enrique & Maisonnave, Helene, 2020. "Assessing the impacts of climate change on female poverty and domestic burdens: A Bolivian case study," Conference papers 333226, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Gutiérrez, Antonio, 2023. "La brecha de género en el emprendimiento y la cultura emprendedora: Evidencia con Google Trends [Entrepreneurship gender gap and entrepreneurial culture: Evidence from Google Trends]," MPRA Paper 115876, University Library of Munich, Germany.
    20. Carla Canelas, 2019. "Informality and poverty in Ecuador," Small Business Economics, Springer, vol. 53(4), pages 1097-1115, December.

    More about this item

    Keywords

    rural areas; self-employment; europe; earnings; work hour;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp15059. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.