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Self-employment career patterns in the Netherlands: exploring individual and regional differences

Author

Listed:
  • Franziska Bay

    (Faculty of Spatial Sciences, University of Groningen)

  • Sierdjan Koster

    (Faculty of Spatial Sciences, University of Groningen)

Abstract

Although the self-employed represent 16.7% of the Dutch labor force (OECD 2020), their internal heterogeneity in profiles regarding motivations, characteristics and career trajectories remains unclear. Yet, understanding self-employment profiles and their spatial distribution may help understand differences in career progression of the self-employed. This study identifies and describes patterns in long-term career trajectories of the Dutch self-employed, and it explores spatial differences along the urban hierarchy. The study uses a life-course approach and register data of the whole population to find common patterns of careers among a sample of Dutch self-employed (N = 42,028) and their spatial distribution. We investigated careers through sequence and cluster analysis of individuals’ socio-economic statuses between 2003–2018. The analysis identifies 7 career clusters that collapse into three main career profiles: Mixed self-employment careers that combine self-employment with wage-employment, stable self-employment, and precarious self-employment. The clusters differ importantly in terms of the individual characteristics of the self-employed including age, gender, educational level and income. In terms of spatial distribution, the study shows that self-employment career profiles follow the urban hierarchy. Urban regions give way to all types of self-employment, while rural regions mainly exhibit stable self-employment. Precarious self-employment presents differently in urban and rural areas; in urban labor markets, we find self-employed individuals vulnerable to economic shocks, losing their jobs as a consequence of the financial crisis in 2007/08. In rural regions, formerly inactive workers become self-employed following the crisis.

Suggested Citation

  • Franziska Bay & Sierdjan Koster, 2023. "Self-employment career patterns in the Netherlands: exploring individual and regional differences," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 71(3), pages 601-625, December.
  • Handle: RePEc:spr:anresc:v:71:y:2023:i:3:d:10.1007_s00168-022-01139-5
    DOI: 10.1007/s00168-022-01139-5
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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