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.
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 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: published in: Environment and Planning A, 2013, 45 (5), 1219-1239
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, 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.
- 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)
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: (Mark Fallak).
If references are entirely missing, you can add them using this form.