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@article{ Haapanen2009, title = {Self-employment duration in urban and rural locations}, author = {Haapanen, Mika and Tervo, Hannu}, journal = {Applied Economics}, number = {19}, pages = {2449-2461}, volume = {41}, year = {2009}, issn = {1466-4283}, doi = {https://doi.org/10.1080/00036840802360278}, urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-242148}, abstract = {Previous research has shown that the local environment is important for self-employment. The dynamics of self-employment varies between areas characterized by different labour market conditions, entrepreneurial traditions and other structural factors. This paper analyzes self-employment spells in Finland with a large register-based data set from the period 1987–2002. The main aim is to investigate the role of region-specific factors as compared with individual-specific and other factors on the duration of self-employment spells. First, the descriptive analysis shows that the exit rates from self-employment and the length of self-employment spells depend upon location (urban vs. rural area) and the cyclical trends in the economy. Second, self-employment duration is modelled using discrete time survival analysis. It is found that rural areas have significantly lower exit rates in the first years of self-employment than urban areas.}, }