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Self‐employment transitions and alternation in Finnish rural and urban labour markets

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  • Hannu Tervo

Abstract

. This paper deals with the transitions and 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. Markovian analysis reveals significant differences by the type of area in the processes of transition between the three labour market states. Alternation between self‐employment and other labour markets states turns out to be greater in rural than urban areas. Five major types of alternating working careers are identified. The type of area is importantly related to alternating working careers even when all the important variables describing personal and family characteristics are included in the models. Abstract. Este artículo trata con las transiciones y alternancia entre el trabajo por cuenta propia, trabajo por cuenta ajena y desempleo en Finlandia de 1987–1999, poniendo especial atención a las diferencias en dinámicas de trabajo autónomo entre áreas caracterizadas por condiciones del mercado laboral diferentes, a saber, ubicaciones rurales y urbanas. Un análisis Markoviano revela diferencias significativas por tipo de área en los procesos de transición entre los tres estados de mercado laboral. La alternancia entre el trabajo por cuenta propia y otros mercados laborales resulta ser mayor en áreas rurales que en urbanas. Se identifican cinco tipos principales de alternancia en el historial laboral. El tipo de área está relacionada de manera importante con historiales laborales alternantes incluso cuando todas las variables importantes que describen características personales y familiares están incluidas en los modelos.

Suggested Citation

  • Hannu Tervo, 2008. "Self‐employment transitions and alternation in Finnish rural and urban labour markets," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 55-76, March.
    • Handle: RePEc:bla:presci:v:87:y:2008:i:1:p:55-76
    DOI: 10.1111/j.1435-5957.2007.00150.x
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    References listed on IDEAS

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    1. Ari Hyytinen & Pekka Ilmakunnas, 2007. "What distinguishes a serial entrepreneur?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(5), pages 793-821, October.
    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. Raquel Carrasco & Mette Ejrnæs, 2003. "Self-employment in Denmark and Spain: Institution, Economic Conditions and Gender differences," CAM Working Papers 2003-06, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    4. repec:cup:cbooks:9780521828130 is not listed on IDEAS
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    Cited by:

    1. Hannu Tervo & Hannu Niittykangas, 2011. "Self-employment transitions at older ages in different local labor markets," ERSA conference papers ersa11p764, European Regional Science Association.
    2. Grégoire Cauchie & Nicolas Gérard Vaillant, 2016. "New Firm Survival: Isolating the Role of Founders’ Human Capital in Accounting for Firm Longevity," Journal of Human Capital, University of Chicago Press, vol. 10(2), pages 186-211.
    3. Backman, Mikaela & Karlsson, Charlie, 2013. "Who says life is over after 55? Entrepreneurship and an aging population," Working Paper Series in Economics and Institutions of Innovation 325, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. BOONE, Christophe & BROUWER, Aleid & JACOBS, Jan & VAN WITTELOOSTUIJN, Arjen, 2009. "Religious pluralism and organizational diversity: An empirical test for the city of Zwolle, the Netherlands, 1851-1914," ACED Working Papers 2009002, University of Antwerp, Faculty of Business and Economics.
    5. Wanting Huang & Lei He & Hongxing Lan, 2022. "The Impact of Self-Employment on the Health of Migrant Workers: Evidence from China Migrants Dynamic Survey," IJERPH, MDPI, vol. 19(10), pages 1-19, May.
    6. Christel Gilles & Alain Trannoy & Antoine Baéna & Léa Flamand & Manal Tannani, 2022. "Quelles performances des entreprises créées par les séniors ?," Working Papers hal-04001005, HAL.
    7. Bradley Heim, 2015. "Understanding the decline in self-employment among individuals nearing retirement," Small Business Economics, Springer, vol. 45(3), pages 561-580, October.
    8. Mikaela Backman, 2013. "Who says life is over after 55? - New firm formation and an ageing population," ERSA conference papers ersa13p58, European Regional Science Association.
    9. Hannu Tervo, 2014. "Who turns to entrepreneurship later in life? - Push and pull in Finnish rural and urban areas," ERSA conference papers ersa14p236, European Regional Science Association.
    10. Anu Tokila & Hannu Tervo, 2011. "Regional differences in returns to education for entrepreneurs versus wage earners," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 689-710, December.
    11. Andrew Ross, 2011. "Regional Determinants of Entrepreneurship in a Small Economy: Panel Data Evidence from Scotland," ERSA conference papers ersa11p848, European Regional Science Association.

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