Determinants of self-employment among commuters and non-commuters
In this paper, we analyse the determinants of the decision to become self-employed among commuters and non-commuters. In the entrepreneurship literature it is claimed that the rich-ness and quality of an individual’s business, professional and social networks play an im-portant role for the decision to become self-employed. People that commute between localities in the same region or between localities in different regions will most proba¬bly be able to develop richer personal networks than non-commuters, since they can develop network links both in the locality where they live and in the locality where they work. In this paper, we test this hypothesis using micro-data for around three million individuals in Sweden. As far as we know, this is the first time this hypothesis is tested. In our empirical analysis, we make a distinction between three groups of individuals: non-com¬muters, intra-regions commuter and inter-region commuters. For each of this groups we test how the probability of becoming self-employed is influenced by a number of characteristics of individuals, characteristics of home and work localities and regions. Our results indicate a significant difference between non-commuters and commuters in terms of the role of networks for becoming self-employed. On the one hand, we find for non-commuters that living and working in a locality with rich business networks reduce the probability of becoming self-employed. For commuters, on the other hand we find that working in a locality with rich business networks increase the probability to become self-employed. In this latter case, living in a municipality with rich business networks has a non-significant effect on the probability of becoming self-employed. Our results indicate that it is the business networks where people work, rather than where they live that exerts a positive influence on the probability of becoming self-employed.
|Date of creation:||21 May 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:cup:cbooks:9780521828130 is not listed on IDEAS
- Jackson, Matthew O. & Wolinsky, Asher, 1996.
"A Strategic Model of Social and Economic Networks,"
Journal of Economic Theory,
Elsevier, vol. 71(1), pages 44-74, October.
- Matthew O. Jackson & Asher Wolinsky, 1995. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Matthew O. Jackson & Asher Wolinsky, 1994. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Bates, Timothy, 1995. "Self-employment entry across industry groups," Journal of Business Venturing, Elsevier, vol. 10(2), pages 143-156, March.
- R. Cowan & N. Jonard & J.-B. Zimmermann, 2006.
"Evolving networks of inventors,"
Journal of Evolutionary Economics,
Springer, vol. 16(1), pages 155-174, April.
- Paul Gompers & Josh Lerner, 2001. "The Venture Capital Revolution," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 145-168, Spring.
- Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, vol. 64(2), pages 373-389, September.
- Michael Hout & Harvey S. Rosen, 1999.
"Self-Employment, Family Background, and Race,"
NBER Working Papers
7344, National Bureau of Economic Research, Inc.
- Nicola Gennaioli & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2013.
"Human Capital and Regional Development,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 128(1), pages 105-164.
- Nicola Gennaioli & Rafael Laporta & Florencio López-de-Silanes & Andrei Schleifer, 2011. "Human capital and regional development," Economics Working Papers 1286, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2012.
- Nicola Gennaioli & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2011. "Human Capital and Regional Development," NBER Working Papers 17158, National Bureau of Economic Research, Inc.
- Nicola Gennaioli & Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer, . "Human Capital and Regional Development," Working Paper 19522, Harvard University OpenScholar.
- Nicola Gennaioli & Rafael Laporta & Florencio López-de-Silanes & Andrei Schleifer, 2011. "Human Capital and Regional Development," Working Papers 581, Barcelona Graduate School of Economics.
- Edward Glaeser, 1997.
"Learning in Cities,"
NBER Working Papers
6271, National Bureau of Economic Research, Inc.
- Edward L. Glaeser, 1997. "Learning in Cities," Harvard Institute of Economic Research Working Papers 1814, Harvard - Institute of Economic Research.
- Carroll, Glenn R. & Mosakowski, Elaine M., 1987. "The Career Dynamics of Self-Employment," Institute for Research on Labor and Employment, Working Paper Series qt13p1n10b, Institute of Industrial Relations, UC Berkeley.
- Giorgio Brunello & Maria De Paola, 2004. "Market Failures and the Under-Provision of Training," CESifo Working Paper Series 1286, CESifo Group Munich.
- Vania Sena & Jonathan Scott & Stephen Roper, 2012. "Gender, borrowing patterns and self-employment: some evidence for England," Small Business Economics, Springer, vol. 38(4), pages 467-480, May.
- Carayol, Nicolas & Roux, Pascale, 2009.
"Knowledge flows and the geography of networks: A strategic model of small world formation,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 71(2), pages 414-427, August.
- Nicolas Carayol & Pascale Roux, 2006. "Knowledge flows and the geography of networks. A strategic model of small worlds formation," Working Papers of BETA 2006-16, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Börje Johansson & Johan Klaesson & Michael Olsson, 2003. "Commuters’ non-linear response to time distances," Journal of Geographical Systems, Springer, vol. 5(3), pages 315-329, November.
- David B. Audretsch & Max Keilbach, 2007. "The Theory of Knowledge Spillover Entrepreneurship," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1242-1254, November.
- Blanchflower, David G., 2000.
"Self-employment in OECD countries,"
Elsevier, vol. 7(5), pages 471-505, September.
- Jackson, Matthew O. & Rogers, Brian W., 2005.
"The economics of small worlds,"
1214, California Institute of Technology, Division of the Humanities and Social Sciences.
- Audretsch, David B. & Lehmann, Erik E., 2005. "Does the Knowledge Spillover Theory of Entrepreneurship hold for regions?," Research Policy, Elsevier, vol. 34(8), pages 1191-1202, October.
- Blanchflower, David G & Meyer, Bruce D, 1994. " A Longitudinal Analysis of the Young Self-Employed in Australia and the United States," Small Business Economics, Springer, vol. 6(1), pages 1-19, February.
- Johansson, Börje & Klaesson, Johan, 2010. "Creative Milieus In The Stockholm Region," Working Paper Series in Economics and Institutions of Innovation 234, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Börje Johansson & Johan Klaesson & Michael Olsson, 2002. "Time distances and labor market integration," Papers in Regional Science, Springer, vol. 81(3), pages 305-327.
- Goldstein, G. S. & Gronberg, T. J., 1984. "Economies of scope and economies of agglomeration," Journal of Urban Economics, Elsevier, vol. 16(1), pages 91-104, July.
- repec:cup:cbooks:9780521030632 is not listed on IDEAS
- Jasjit Singh, 2005. "Collaborative Networks as Determinants of Knowledge Diffusion Patterns," Management Science, INFORMS, vol. 51(5), pages 756-770, May.
- Carayol, Nicolas & Roux, Pascale & YIldIzoGlu, Murat, 2008. "Inefficiencies in a model of spatial networks formation with positive externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 495-511, August.
- Nicolas CARAYOL & Pascale ROUX, 2007. "The Strategic Formation of Interindividual Collaboration Networks. Evidence from Co-invention Patterns," Annales d'Economie et de Statistique, ENSAE, issue 87-88, pages 275-301.
- Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
- Taylor, Mark P, 1999. "Survival of the Fittest? An Analysis of Self-Employment Duration in Britain," Economic Journal, Royal Economic Society, vol. 109(454), pages C140-55, March.
When requesting a correction, please mention this item's handle: RePEc:hhs:cesisp:0365. See general 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: (Vardan Hovsepyan)
If references are entirely missing, you can add them using this form.