Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 404: The location of new firms - Influence of commuting behaviour

Mikaela Backman () and Charlie Karlsson ()
Additional contact information
Mikaela Backman: Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, & Centre of Excellence for Science and Innovation Studies (CESIS)
Charlie Karlsson: Centre of Excellence for Science and Innovation Studies (CESIS), Jönköping International Business School, Blekinge Institute of Technology, & University of Southern Denmark

Abstract: In this paper, we analyse where people who become self-employed actually start their firms. In the entrepreneurship literature, it is generally assumed that individuals who start a firm start it where they live. We question this general assumption and show that this does not hold for commuters. Our results show that of those individuals that were short-distance commuters in 2007 and become self-employed in 2008, 90.1 percent started their firm in their work munici-pality. Only 9.4 percent started their firm in their residence municipality. For long-distance commuters, the figures were 93.6 and 6.4 percent, respectively. Our econometric estimations show that the probability to start a firm in the work municipality increases with the number of years as a commuter, with commuting to a larger municipality, and with the relative size of the work municipality compared to the municipality of residence. Our results indicate that the entrepreneurship literature must reconsider its general statement that individuals start firms where they live.

Keywords: Entrepreneurship; self-employment; location; commuting; networks; micro-level data

JEL-codes: C21; J24; L26; R12

20 pages, May 7, 2015

Full text files

cesiswp404.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:31:35.