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Do regional self-employment rates converge in the UK? Empirical evidence using club-clustering algorithm

Author

Listed:
  • George Saridakis

    (Kent University)

  • Miguel A. Mendoza González

    (UNAM)

  • Chris Hand

    (Kingston University)

  • Rebeca I. Muñoz Torres

    (Westminster University)

Abstract

This paper examines the dynamics of self-employment rates overall and by gender across the UK during the period 2004–2016. Specifically, using the panel convergence methodology suggested by Phillips and Sul (Econometrica 75:1771–1855, 2007) we investigate whether self-employment rates can be characterised by a process where all regions tend to the same equilibrium (global or full convergence) or, if not, whether there are one or more clusters of regions with the same equilibrium (convergence clubs). We find that there is no global regional convergence in total and gender-specific self-employment rates. However, two convergence clubs of regions with lower self-employment rates are found along with a group of non-convergent regions which have higher self-employment rates and somewhat higher rates of growth in self-employment. We also show that gender differences in convergence patterns across UK exist.

Suggested Citation

  • George Saridakis & Miguel A. Mendoza González & Chris Hand & Rebeca I. Muñoz Torres, 2020. "Do regional self-employment rates converge in the UK? Empirical evidence using club-clustering algorithm," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 179-192, August.
    • Handle: RePEc:spr:anresc:v:65:y:2020:i:1:d:10.1007_s00168-020-00979-3
    DOI: 10.1007/s00168-020-00979-3
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    References listed on IDEAS

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    1. Peter C. B. Phillips & Donggyu Sul, 2007. "Transition Modeling and Econometric Convergence Tests," Econometrica, Econometric Society, vol. 75(6), pages 1771-1855, November.
    2. Martin Robson, 1998. "Self-employment in the UK regions," Applied Economics, Taylor & Francis Journals, vol. 30(3), pages 313-322.
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    5. Saridakis, George & Marlow, Susan & Storey, David J., 2014. "Do different factors explain male and female self-employment rates?," Journal of Business Venturing, Elsevier, vol. 29(3), pages 345-362.
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    7. Zoltan Acs & Thomas Åstebro & David Audretsch & David T. Robinson, 2016. "Public policy to promote entrepreneurship: a call to arms," Small Business Economics, Springer, vol. 47(1), pages 35-51, June.
    8. Michael Fritsch & Michael Wyrwich, 2014. "The Long Persistence of Regional Levels of Entrepreneurship: Germany, 1925-2005," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 955-973, June.
    9. Georgios Fotopoulos & David J Storey, 2017. "Persistence and change in interregional differences in entrepreneurship: England and Wales, 1921–2011," Environment and Planning A, , vol. 49(3), pages 670-702, March.
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    11. Martin Andersson & Sierdjan Koster, 2011. "Sources of persistence in regional start-up rates--evidence from Sweden," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 179-201, January.
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    Cited by:

    1. Nicholas Litsardopoulos & George Saridakis & Chris Hand, 2020. "The Effects of Rural and Urban Areas on Time Allocated to Self-Employment: Differences between Men and Women," Sustainability, MDPI, vol. 12(17), pages 1-18, August.

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    More about this item

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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