Hostname: page-component-586b7cd67f-dlnhk Total loading time: 0 Render date: 2024-11-24T11:55:54.075Z Has data issue: false hasContentIssue false
  • English
  • Français

The Economic Impacts of Self-Employment

Published online by Cambridge University Press:  26 January 2015

Stephan J. Goetz ,
David A. Fleming  and
Anil Rupasingha
Stephan J. Goetz
Affiliation:
Northeast Regional Center for Rural Development, Pennsylvania State University, University Park, Pennsylvania
David A. Fleming
Affiliation:
Northeast Regional Center for Rural Development, Pennsylvania State University, University Park, Pennsylvania
Anil Rupasingha
Affiliation:
Federal Reserve Bank of Atlanta, Atlanta, Georgia
Get access Rights & Permissions [Opens in a new window]

Abstract

Even as self-employment continues to increase, policymakers remain largelyunaware of this trend and fail to see it as an opportunity for addressingenduring joblessness. In part, this is explained by limited data on theself-employed and by widespread perceptions that returns to self-employmentare low; that the self-employed are merely patching together piecemeal workopportunities requiring limited skills; and that there are no local economicimpacts or spillover benefits into other sectors. Contrary to theseperceptions, recent studies suggest that self-employment has tangiblepositive economic impacts not only on wage and salary employment but also onper capita income growth and poverty reduction. This article synthesizes thepertinent emerging literature and assesses dynamics of the lags involvedbetween self-employment shocks and subsequent employment growth.

Keywords

economic impactslaborrural developmentself-employmentJ54016R11
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 44 , Issue 3 , August 2012 , pp. 315 - 321
Copyright
Copyright © Southern Agricultural Economics Association 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acs, Z., and Mueller, P.. “Employment Effects of Business Dynamics: Mice, Gazelles and Elephants.” Small Business Economics 30(2008): 85–100.Google Scholar
Birch, D.L., Job Creation in America: How Our Smallest Companies Put the Most People to Work. New York: Free Press, 1987.Google Scholar
Blau, D., “A Time-Series Analysis of Self-Employment in the United States.” The Journal of Political Economy 95(1987):445–67.10.1086/261466Google Scholar
Carree, M.A., and Thurik, A.R.. “The Impact of Entrepreneurship on Economic Growth.” Handbook of Entrepreneurship Research, International Handbook Series on Entrepreneurship. Acs, Z.J. and Audretsch, D.B., eds., Chapter 20. Berlin: Springer, 2010.Google Scholar
Deller, S., and McConnon, J.C.. “Microenterprises and Economic Growth: A Panel Study of the US states 1977-1997.” Applied Economics Letters 16(2009): 1307–12.10.1080/13504850701367361Google Scholar
Dejardin, M., and Fritsch, M.. “Entrepreneurial Dynamics and Regional Growth.” Small Business Economics 36(2011):377—82.10.1007/s11187-009-9258-7Google Scholar
Fleming, D., and Goetz, S.J.. “Does Local Firm Ownership Matter?” Economic Development Quarterly 25(2011):277–81.10.1177/0891242411407312Google Scholar
Fritsch, M., “How Does New Business Formation Affect Regional Development? Introduction to the Special Issue.” Small Business Economics 30(2008): 1–14.Google Scholar
Fritsch, M., and Mueller, P.. “The Effect of New Business Formation on Regional Development Over Time: The Case of Germany.” Small Business Economics 30(2008): 15–29.Google Scholar
Glaeser, E.L., Rosenthal, S.S., and Strange, W.C.. “Urban Economics and Entrepreneurship.” Journal of Urban Economics 60(2010): 1–14.Google Scholar
Goetz, S.J., and Debertin, D.L.. “Why Farmers Quit: A County-Level Analysis.” American Journal of Agricultural Economics 83(2001): 1010–23.10.1111/0002-9092.00226Google Scholar
Goetz, S.J., Partridge, M., Deller, S.C., and Fleming, D.. “Evaluating U.S. Rural Entrepreneurship Policy.” Journal of Regional Analysis and Policy 40(2010):20–33.Google Scholar
Goetz, S.J., Partridge, M.D., Rickman, D.S., and Majumdar, S.. “Sharing the Gains of Local Economic Growth: Race to the Top vs. Race to the Bottom Economic Development.” Environment and Planning C, Government & Policy 29(2011): 428–56.10.1068/c1077rGoogle Scholar
Hamilton, B.H., “Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment.” The Journal of Political Economy 108(2000):604–31.10.1086/262131Google Scholar
Henderson, J., and Weiler, S.. “Entrepreneurs and Job Growth: Probing the Boundaries of Time and Space.” Economic Development Quarterly 24(2010):23–32.10.1177/0891242409350917Google Scholar
Lichtenstein, G., and Lyons, T.S.. “The Entrepreneurial Development System: Transforming Business Talent and Community Economies.” Economic Development Quarterly 15(2001):3– 20.10.1177/089124240101500101Google Scholar
Loveridge, S., and Nizalov, D.. “Operationalizing the Entrepreneurial Pipeline Theory: An Empirical Assessment of the Optimal Size Distribution of Local Firms.” Economic Development Quarterly 21(2007):244–62.Google Scholar
Neumark, D., Wall, B., and Zhang, J.. “Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series.” The Review of Economics and Statistics 93(2011): 16–29.10.1162/REST_a_00060Google Scholar
Rupasingha, A., and Goetz, S.J.. “Self-Employment and Local Economic Performance: Evidence from US Counties.” Papers in Regional Science (2012), DOL10.1111/j.1435-5957.2011.00396.x.Google Scholar
Schuetze, H.J., “Tax Incentives and Entrepreneur-ship: Measurement and Data Considerations.” Measuring Entrepreneurship. Congregado, E., ed., Chapter 10. New York, NY: Springer, 2008.Google Scholar
Shrestha, S.S., Goetz, S.J., and Rupasingha, A.. “Proprietorship Formations and U.S. Job Growth.” The Review of Regional Studies 27(2007): 146–68.Google Scholar
Van Praag, C.M., and Versloot, P.H.. “What is the Value of Entrepreneurship? A Review of Recent Research.” Small Business Economics 29(2007): 351–82.10.1007/s11187-007-9074-xGoogle Scholar
Van Stel, A., and Storey, D.. “The Link Between Firm Births and Job Creation: Is there a Upas Tree Effect?” Regional Studies 38(2004):893–909.10.1080/0034340042000280929Google Scholar
Wennekers, S., and Thurik, R.. “Linking Entrepreneurship and Economic Growth.” Small Business Economics 13(1999):27—55.Google Scholar