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The Determinants of Self-Employment Growth

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  • Stephan J. Goetz
  • Anil Rupasingha

Abstract

The sustained surge in self-employment since 2000 has largely gone unnoticed by policy makers and economic developers. Here the authors document this surge and identify variables associated with expanding self-employment. Results provide mixed evidence about the importance of capital access to self-employment growth, but reveal that different approaches are needed in different county types depending on their proximity to metro areas and population size, if the goal is to increase future rural self-employment rates. In all county types, the initial share of self-employed predicts self-employment growth, underscoring the importance of a culture favoring entrepreneurship and path dependence. Self-employment earnings and educational attainment also play significant roles, as does the ethnic diversity of the population. Population density matters in both rural and urban counties, but less so within individual rural–urban continuum code categories. State policy, especially labor market freedom, has important effects on self-employment in most county types and periods studied.

Suggested Citation

  • Stephan J. Goetz & Anil Rupasingha, 2014. "The Determinants of Self-Employment Growth," Economic Development Quarterly, , vol. 28(1), pages 42-60, February.
  • Handle: RePEc:sae:ecdequ:v:28:y:2014:i:1:p:42-60
    DOI: 10.1177/0891242413507102
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Minghao Li & Stephan J. Goetz & Mark Partridge & David A. Fleming, 2016. "Location determinants of high-growth firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 97-125, January.
    2. Betz, Michael R. & Partridge, Mark D. & Farren, Michael & Lobao, Linda, 2015. "Coal mining, economic development, and the natural resources curse," Energy Economics, Elsevier, vol. 50(C), pages 105-116.
    3. Rafael González-Val & Miriam Marcén, 2019. "Agglomeration Economies in Small Cities and Business: The Impact of the Great Recession in Aragón (Spain)," Sustainability, MDPI, vol. 11(14), pages 1-17, July.
    4. Amir B. Ferreira Neto & Joshua Hall, 2017. "The Effect of Health Care Entrepreneurship on Local Health: The Case of MedExpress in Appalachia," Working Papers 17-15, Department of Economics, West Virginia University.
    5. repec:rre:publsh:v:43:y:2013:i:23:p:1-22 is not listed on IDEAS
    6. Nobuo Kobayashi, 2020. "A factor analysis of business start-up rates in Japan: contemporary and historical context," Discussion Paper Series 202, School of Economics, Kwansei Gakuin University.
    7. Schmidt, Claudia & Goetz, Stephan J. & Tian, Zheng, 2021. "Female farmers in the United States: Research needs and policy questions," Food Policy, Elsevier, vol. 101(C).
    8. Deller, Steven C. & Conroy, Tessa & Markeson, Bjorn, 2018. "Social capital, religion and small business activity," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 365-381.
    9. Albert Sumell, 2020. "Overdose Deaths and Entrepreneurial Activity," Economies, MDPI, vol. 8(1), pages 1-10, March.
    10. Jacqueline Chattopadhyay, 2018. "State Health Insurance Regulation and Self-Employment Rates After the Great Recession: The Role of Guaranteed Issue Mandates," Economic Development Quarterly, , vol. 32(1), pages 78-92, February.
    11. Tony Jackson, 2015. "Entrepreneurship training in tertiary education and business," Local Economy, London South Bank University, vol. 30(5), pages 467-472, August.
    12. Panka Bencsik & Tuugi Chuluun, 2021. "Comparative well-being of the self-employed and paid employees in the USA," Small Business Economics, Springer, vol. 56(1), pages 355-384, January.
    13. Mark D. Partridge, 2013. "America’s Job Crisis and the Role of Regional Economic Development Policy," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 97-110, Winter.

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