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

Arbeitspapier

Based on the notion that entrepreneurship is a 'local event' , the literature argues that selfemployed 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 selfemployment are associated with internal migration.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 413

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Empirical Analysis ; Geographic Labor Mobility; Immigrant Workers ; Job, Occupational, and Intergenerational Mobility; Promotion ; Entrepreneurship
• Subject: Self-employment ; migration ; residential mobility ; rootedness hypothesis ; Germany ; Selbstständige ; Unternehmer ; Binnenwanderung ; Region ; Schätzung ; Deutschland ; Großbritannien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Reuschke, Darja ; Ham, Maarten Van
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/150958
• Last update: 10.03.2025, 11:43 AM CET