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Self-employment dynamics in rural and urban labour markets

  • Hannu Tervo

    ()

Only few in-depth studies of the alternation between different labour market states have been published. This paper deals with the alternation between self-employment, paid-employment and non-employment in Finland in 1987-1999, paying special attention to differences in self-employment dynamics between areas characterized by different labour market conditions, viz. rural and urban locations. The analysis is based on a one-percent random sample drawn from panel data on the census and longitudinal employment statistics. The results show differences in the transition processes between the three labour market states by the type of area. The results suggest that alternation between different employment options is likely to increase, if employment opportunities remain low in local labour markets. Five major types of working careers are identified, all of which are more common in rural than urban areas. The type of area is importantly related to alternating working careers even when all the important control variables are included into the models.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p396.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p396
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  1. Carrasco, R., 1997. "Transitions to and from Self-Employment in Spain: An Empirical Analysis," Papers 9710, Centro de Estudios Monetarios Y Financieros-.
  2. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
  3. Tervo, Hannu & Ritsilä, Jari, 2000. "Effects Of Unemployment On New Firm Formation:Micro-Level Panel Data Evidence From Finland," ERSA conference papers ersa00p88, European Regional Science Association.
  4. Levesque, Moren & Shepherd, Dean A. & Douglas, Evan J., 2002. "Employment or self-employment: A dynamic utility-maximizing model," Journal of Business Venturing, Elsevier, vol. 17(3), pages 189-210, May.
  5. Danny Quah, 1992. "Empirical cross-section dynamics in economic growth," Discussion Paper / Institute for Empirical Macroeconomics 75, Federal Reserve Bank of Minneapolis.
  6. repec:cup:cbooks:9780521828130 is not listed on IDEAS
  7. Niittykangas, Hannu & Tervo, Hannu, 2002. "Intergenerational mobility in self-employment: a regional approach," ERSA conference papers ersa02p350, European Regional Science Association.
  8. Hyytinen, Ari & Ilmakunnas, Pekka, 2004. "Entrepreneurial Aspirations," Discussion Papers 890, The Research Institute of the Finnish Economy.
  9. Lazear, Edward, 2003. "Entrepreneurship," IZA Discussion Papers 760, Institute for the Study of Labor (IZA).
  10. Jaakko Pehkonen & Hannu Tervo, 1998. "Persistence and Turnover in Regional Unemployment Disparities," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 445-458.
  11. Aki Kangasharju, 2002. "The Role of Education in Self-Employment Success in Finland," Growth and Change, Wiley Blackwell, vol. 33(2), pages 216-237.
  12. Aki Kangasharju & Sari Pekkala, 2001. "The Role of Education in Self-Employment Success," Studies in Economics 0116, School of Economics, University of Kent.
  13. Raquel Carrasco & Mette Ejrnæs, 2003. "Self-employment in Denmark and Spain: Institution, Economic Conditions and Gender differences," CAM Working Papers 2003-06, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
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