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Spatial variations in intergenerational transmission of self-employment

Author

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  • Hannu Niittykangas
  • Hannu Tervo

Abstract

Niittykangas H. and Tervo H. (2005) Spatial variations in intergenerational transmission of self-employment, Regional Studies 39 , 319-332. Intergenerational transfers of human and non-human capital may motivate children to follow their self-employed parent. This paper analyses occupational inheritance among self-employed families in Finland. Longitudinal micro data from 1970-99 are exploited. The sample consists of children aged 0-14 years in 1970. The results show that having an entrepreneurial family background strengthens the probability of entering self-employment. The results confirm the notion of the importance of the local environment for self-employment. They also offer some evidence for the hypothesis that intergenerational transmission of self-employment is an explanation for spatial differences in self-employment.

Suggested Citation

  • Hannu Niittykangas & Hannu Tervo, 2005. "Spatial variations in intergenerational transmission of self-employment," Regional Studies, Taylor & Francis Journals, vol. 39(3), pages 319-332.
  • Handle: RePEc:taf:regstd:v:39:y:2005:i:3:p:319-332
    DOI: 10.1080/00343400500087166
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    References listed on IDEAS

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    1. Bates, Timothy, 1998. "Survival patterns among newcomers to franchising," Journal of Business Venturing, Elsevier, vol. 13(2), pages 113-130, March.
    2. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
    3. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
    4. Ritsila, Jari & Tervo, Hannu, 2002. "Effects of Unemployment on New Firm Formation: Micro-level Panel Data Evidence from Finland," Small Business Economics, Springer, vol. 19(1), pages 31-40, August.
    5. Bernard F. Lentz & David N. Laband, 1990. "Entrepreneurial Success and Occupational Inheritance among Proprietors," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 563-579, August.
    6. Frederic Delmar & Per Davidsson, 2000. "Where do they come from? Prevalence and characteristics of nascent entrepreneurs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 12(1), pages 1-23, January.
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    Citations

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    Cited by:

    1. Hannu Tervo & Hannu Niittykangas, 2011. "Self-employment transitions at older ages in different local labor markets," ERSA conference papers ersa11p764, European Regional Science Association.
    2. Darja Reuschke, 2011. "Self-Employment and Geographical Mobility in Germany," SOEPpapers on Multidisciplinary Panel Data Research 417, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Mika Haapanen & Hannu Tervo, 2009. "Self-employment duration in urban and rural locations," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2449-2461.
    4. Michael Wyrwich, 2015. "Entrepreneurship and the intergenerational transmission of values," Small Business Economics, Springer, vol. 45(1), pages 191-213, June.
    5. Edward L. Glaeser & Sari Pekkala Kerr & William R. Kerr, 2015. "Entrepreneurship and Urban Growth: An Empirical Assessment with Historical Mines," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 498-520, May.
    6. Hannu Tervo, 2006. "Regional unemployment, self-employment and family background," Applied Economics, Taylor & Francis Journals, vol. 38(9), pages 1055-1062.
    7. Hannu Tervo, 2014. "Who turns to entrepreneurship later in life? - Push and pull in Finnish rural and urban areas," ERSA conference papers ersa14p236, European Regional Science Association.
    8. Henley, Andrew, 2015. "The Post Crisis Growth in the Self-Employed: Volunteers or Reluctant Recruits?," IZA Discussion Papers 9232, Institute for the Study of Labor (IZA).
    9. Hannu Tervo & Mika Haapanen, 2006. "Gender Differences in Self-Employment in Finnish Regions," ERSA conference papers ersa06p380, European Regional Science Association.
    10. Román, Concepción & Congregado, Emilio & Millán, José María, 2013. "Start-up incentives: Entrepreneurship policy or active labour market programme?," Journal of Business Venturing, Elsevier, vol. 28(1), pages 151-175.
    11. Anu Tokila & Hannu Tervo, 2011. "Regional differences in returns to education for entrepreneurs versus wage earners," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 689-710, December.

    More about this item

    Keywords

    Self-employment; Intergenerational transfer; Spatial differences; Micro data; Logit analysis; Finland; Travail independant; Transmission entre les generations; Variation geographique; Donnees microeconomiques; Analyse logit; Finlande; Freiberufliche; Tatigkeit; Vererbung von einer; Generation zur andern; Mikrodaten raumlicher; Unterschiede; Logitanalyse; Finnland; Empleo autonomo; Traspaso inter-generacional; Diferencias espaciales; Datos micro; Analisis logit; Finlandia; JEL classifications: J23; J24; J62; M13;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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