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Testing the "residential rootedness" hypothesis of self-employment for Germany and the UK

Testing the "residential rootedness" hypothesis of self-employment for Germany and the UK
Testing the "residential rootedness" hypothesis of self-employment for Germany and the UK
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 no less likely than workers in paid employment to migrate over longer distance. In contrast to the residential rootedness hypothesis we found that 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.
0308-518X
1219-1239
Reuschke, Darja
224493ce-38bc-455d-9341-55f8555e7e13
van Ham, Maarten
7eadb341-b951-4339-8fa0-b341738a6431
Reuschke, Darja
224493ce-38bc-455d-9341-55f8555e7e13
van Ham, Maarten
7eadb341-b951-4339-8fa0-b341738a6431

Reuschke, Darja and van Ham, Maarten (2013) Testing the "residential rootedness" hypothesis of self-employment for Germany and the UK. Environment and Planning A, 45 (5), 1219-1239. (doi:10.1068/a45288).

Record type: Article

Abstract

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 no less likely than workers in paid employment to migrate over longer distance. In contrast to the residential rootedness hypothesis we found that 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.

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More information

Published date: 2013
Organisations: Geography & Environment

Identifiers

Local EPrints ID: 399761
URI: https://eprints.soton.ac.uk/id/eprint/399761
ISSN: 0308-518X
PURE UUID: 73294990-6b9c-4b81-bc86-906678155326
ORCID for Darja Reuschke: ORCID iD orcid.org/0000-0001-6961-1801

Catalogue record

Date deposited: 31 Aug 2016 15:35
Last modified: 20 Jul 2019 00:33

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Contributors

Author: Darja Reuschke ORCID iD
Author: Maarten van Ham

University divisions

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