Abstract

http://ssrn.com/abstract=1974892
 


 



Testing the ‘Residential Rootedness' - Hypothesis of Self-Employment for Germany and the UK


Darja Reuschke Reuschke


University of St Andrews

Maarten Van Ham


University of St. Andrews; Institute for the Study of Labor (IZA)

December 2011

SOEPpaper No. 413-2011

Abstract:     
Based on the notion that entrepreneurship is a ‘local event,’ the literature argues that self-employed workers and entrepreneurs are ‘rooted’ in place. This paper tests the ‘residential rootedness’-hypothesis of self-employment by examining for Germany and the UK whether the self-employed are less likely to move or migrate than employees. Using longitudinal data from the German Socio-economic Panel Study (SOEP) and the British Household Panel Survey (BHPS) and accounting for transitions in employment status we found little evidence that the self-employed in Germany and the UK are more rooted in place than employees. Firstly, the self-employed are not less likely to move or migrate over the period 2001-08. Secondly, those who are currently self-employed are also not more likely to have remained in the same place over a period of three years (2008-06 and 2005-03) as compared to those who are currently employed. Thirdly, those who are continuously self-employed are not less likely to have moved or migrated over a 3-period than those in continuous paid employment. Fourthly, in contrast to the prevalent ‘residential rootedness’-hypothesis in economic geography and regional studies, we found that the entry into and the exit from self-employment are associated with internal migration.

Number of Pages in PDF File: 20

Keywords: self-employment, migration, residential mobility, rootedness hypothesis, UK, Germany

JEL Classification: D22, J61, J62, L26

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Date posted: December 20, 2011  

Suggested Citation

Reuschke, Darja Reuschke and van Ham, Maarten, Testing the ‘Residential Rootedness' - Hypothesis of Self-Employment for Germany and the UK (December 2011). SOEPpaper No. 413-2011. Available at SSRN: http://ssrn.com/abstract=1974892 or http://dx.doi.org/10.2139/ssrn.1974892

Contact Information

Darja Reuschke (Contact Author)
University of St Andrews ( email )
North St
St Andrews, Fife KY16 9AJ
United Kingdom
++44(0)1334 461764 (Phone)
++44(0)1334467298 (Fax)
HOME PAGE: http://www.st-andrews.ac.uk/chr
Maarten Van Ham
University of St. Andrews ( email )
North St
Saint Andrews, Fife KY16 9AJ
United Kingdom
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
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