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Title: A Wage-Efficiency Spatial Model for US Self-Employed Workers

Citation Type: Working Paper

Publication Year: 2016

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Abstract: In this paper, we study self-employment in a theoretical setting derived from wage-efficiency spatial models, where leisure and effort at work are complementary. We develop a spatial model of self-employment in which effort at work and commuting are negatively related, and thus the probability of self-employment decreases with expected commuting time. We use time-use data from the American Time Use Survey 2003-2014 to analyze the spatial distribution of self-employment across metropolitan areas in the US, focusing on the relationship between commuting time and the probability of self-employment. Our empirical results show that the probability of self-employment is negatively related to the expected commuting time, giving empirical support to our theoretical model. Furthermore, we propose a GIS model to show that commuting and self-employment rates are, in relation to unemployment rates, negatively related.

Url: http://ftp.iza.org/dp9634.pdf

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Authors: Gimenez-Nadal, Jose Ignacio; Molina, Jose Alberto; Velilla, Jorge

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Publication Number: 9634

Institution: IZA

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Data Collections: IPUMS Time Use - ATUS

Topics: Labor Force and Occupational Structure, Methodology and Data Collection

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