Self-employment effects on regional growth: a bigger bang for a buck? View Full Text


Ontology type: schema:ScholarlyArticle      Open Access: True


Article Info

DATE

2019-01

AUTHORS

Alexandra Tsvetkova, Mark Partridge, Michael Betz

ABSTRACT

This paper estimates the net employment spillovers from changes in self-employment (SE) and compares them to spillovers from changes in wage and salary (WS) employment using US county-level data. Our findings offer a policy-relevant perspective on the relative importance of SE and WS employment and help bridge two entrepreneurship research traditions. Our estimated effects of self-employment, at the margin, are substantially larger than identical effects of paid employment. This supports the literature that points to a special role played by self-employed businesses in economic growth. At the same time, the little attention given to SE as a potential engine of growth among policymakers and scholars can be explained, at least in part, by the relatively small total economic impact of self-employment stemming from its small share of the economy. In an austere fiscal environment, however, spending a dollar to stimulate SE is likely to have greater returns as opposed to stimulating WS employment, assuming the costs of adding one SE and one WS job are comparable. More... »

PAGES

1-19

Identifiers

URI

http://scigraph.springernature.com/pub.10.1007/s11187-018-9988-5

DOI

http://dx.doi.org/10.1007/s11187-018-9988-5

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1100790629


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55 schema:description This paper estimates the net employment spillovers from changes in self-employment (SE) and compares them to spillovers from changes in wage and salary (WS) employment using US county-level data. Our findings offer a policy-relevant perspective on the relative importance of SE and WS employment and help bridge two entrepreneurship research traditions. Our estimated effects of self-employment, at the margin, are substantially larger than identical effects of paid employment. This supports the literature that points to a special role played by self-employed businesses in economic growth. At the same time, the little attention given to SE as a potential engine of growth among policymakers and scholars can be explained, at least in part, by the relatively small total economic impact of self-employment stemming from its small share of the economy. In an austere fiscal environment, however, spending a dollar to stimulate SE is likely to have greater returns as opposed to stimulating WS employment, assuming the costs of adding one SE and one WS job are comparable.
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