Testing the ‘residential rootedness’ hypothesis of self-employment for Germany and the UK
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Based on the notion that entrepreneurship is a ‘local event’, the literature argues that 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 over long distances (internal migration) than workers in paid employment. 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 workers in paid employment. Generally speaking, the self-employed were not less likely than workers in paid employment to migrate over longer distance. In contrast to the residential rootedness–hypothesis we found that an entry into self-employment and female self-employment are associated with internal migration, and that the self-employed who work from home (home-based businesses) are fairly geographically mobile. The gendered results suggest that women might use self-employment as a strategy to be spatially mobile with their household, or as a strategy to stay in the workforce after having moved residence until they find a job in the more secure wage and salary sector.
Reuschke , D & Van Ham , M 2013 , ' Testing the ‘residential rootedness’ hypothesis of self-employment for Germany and the UK ' Environment and Planning A , vol 45 , no. 5 , pp. 1219-1239 . DOI: 10.1068/a45288
Environment and Planning A
Copyright © 2013 Pion an its Licensors. Darja Reuschke and Maarten van Ham, 2013. The definitive, peer-reviewed and edited version of this article is published in Environment and Planning A, 45, 1219-1239, 2013, doi:10.1068/a45288
The work on this paper was funded by a Marie Curie grant from the European Commission within the 7th Framework Program (ID 252752).
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