Well-being effects of self-employment: A spatial inquiry |
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Authors: | Maria Abreu Ozge Oner Aleid Brouwer Eveline van Leeuwen |
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Institution: | 1. University of Cambridge, Department of Land Economy, Cambridge, United Kingdom;2. University of Cambridge, Pembroke College, Cambridge, United Kingdom;3. Research Institute of Industrial Economics (IFN), Stockholm, Sweden;4. Centre for Entrepreneurship and Spatial Economics, Jönköping, Sweden;5. University of Groningen, Faculty of Spatial Sciences, Groningen, the Netherlands;6. NHL Stenden University of Applied Sciences, Academy International Business Administration, Leeuwarden, the Netherlands.;7. Urban Economics Group, Wageningen University, the Netherlands |
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Abstract: | Our paper presents an empirical analysis of entrepreneurial well-being using a large-scale longitudinal household survey from the UK that tracks almost 50,000 individuals across seven waves over the period 2009–2017, as well as a number of exploratory case studies. We contribute to the existing literature by investigating how entrepreneurial well-being varies across locations along the urban-rural continuum, and across wealthy-deprived neighbourhoods. We use a Coarsened Exact Matching (CEM) approach to compare the well-being outcomes of individuals who switch into self-employment from waged employment, and show that entrepreneurial well-being, in the form of job satisfaction, is significantly higher for those living in semi-urban locations, relative to those living in urban and rural locations. We argue that semi-urban locations provide an optimal combination of ease of doing business and quality of life. Our results also show that individuals in wealthy neighbourhoods who switch into self-employment experience higher job satisfaction than otherwise comparable individuals living in materially deprived neighbourhoods, although the latter experience greater levels of life satisfaction following the switch. |
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Keywords: | Corresponding author at: University of Cambridge Department of Land Economy Cambridge United Kingdom L26 I13 R2 P25 R23 E24 Entrepreneurship Well-being Self-employment Urban-rural Neighbourhood effects |
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