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 self-employed 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 self-employment are associated with internal migration.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6062.
Length: 20 pages
Date of creation: Oct 2011
Date of revision:
Publication status: forthcoming in: Environment and Planning A
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Other versions of this item:
- Darja Reuschke & Maarten Van Ham, 2011. "Testing the 'Residential Rootedness': Hypothesis of Self-Employment for Germany and the UK," SOEPpapers on Multidisciplinary Panel Data Research 413, DIW Berlin, The German Socio-Economic Panel (SOEP).
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - 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-2011-11-14 (All new papers)
- NEP-BEC-2011-11-14 (Business Economics)
- NEP-ENT-2011-11-14 (Entrepreneurship)
- NEP-LAB-2011-11-14 (Labour Economics)
- NEP-MIG-2011-11-14 (Economics of Human Migration)
- NEP-URE-2011-11-14 (Urban & Real Estate Economics)
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