Geography Reference
In-Depth Information
10.
Most clearly demonstrated in situations of rising unemployment: this lowers the opportunity costs for
self-employment, other things being equal (Creedy and Johnson, 1983; Evans and Leighton, 1990).
11.
As self-employment essentially rel ects an occupational choice, the numbers of self-employed might be
stimulated by changing labour market regulation and i scal regimes without any structural change of
the economy at all: lowering employment protection and increasing income tax for employees are two
institutional changes that are likely to lower the opportunity costs of self-employment. This might have
indirect ef ects on more innovative forms of entrepreneurship as this lowers the inertia of incumbents, but
also lowers the incentives of incumbents to invest in their human resources.
To some degree, self-employment brings us back to a Coasian framework, as the decision for individual
actors comes down to whether they join a i rm with an employment contract (hierarchy) or transact as a
i rm on a market.
12.
The latter situation is likely to give rise to a spin-of i rm.
13.
This focus on more static approaches is to some extent explainable by the dii culty of collecting data
over longer time spans. There have been more long-term studies in organizational ecology and evolution-
ary economics, most often based on archival data, but these studies largely focus on single populations/
industries, not on whole communities or regions.
14.
The traditional focus within evolutionary economics on the i rm level concept of routines can be comple-
mented with the individual level concept of skills, and the environmental level concept of institutions (see
for example the recent discussion on this in Boschma and Frenken, 2009).
15.
This might also involve an entrepreneurial team, adding another unit of analysis in between the individual
and the multi-person i rm organization.
References
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