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Self-employment dynamics in rural and urban labour markets

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  • Hannu Tervo

Abstract

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.

Suggested Citation

  • Hannu Tervo, 2004. "Self-employment dynamics in rural and urban labour markets," ERSA conference papers ersa04p396, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa04p396
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    References listed on IDEAS

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    Cited by:

    1. Gülümser, A.A. & Baycan-Levent, T. & Nijkamp, Peter, 2008. "Changing trends in rural self-employment in Europe and Turkey," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Mika Haapanen & Hannu Tervo, 2009. "Self-employment duration in urban and rural locations," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2449-2461.
    3. Dimitrios G. Ierapetritis & Dimitrios Lagos, 2012. "Building rural entrepreneurship in Greece: lessons from lifelong learning programmes," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship, Social Capital and Governance, chapter 12, pages 281-301, Edward Elgar Publishing.
    4. Gulumser, Aliye Ahu & Baycan Levent, Tuzin & Nijkamp, Peter, 2007. "Changing trends in rural self-employment in Europe," Serie Research Memoranda 0017, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    5. Dimitrios Ierapetritis & Dimitrios Lagos, 2011. "Lifelong Learning As A Pillar Of Entrepreneurship In The Greek Countryside," ERSA conference papers ersa10p1510, European Regional Science Association.
    6. Hannu Tervo, 2006. "Regional unemployment, self-employment and family background," Applied Economics, Taylor & Francis Journals, vol. 38(9), pages 1055-1062.
    7. Stanislaw Cichocki, 2012. "Self-employment and the business cycle: evidence from Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 24(2), pages 219-239, January.

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