Spatial variations in intergenerational transmission of self-employment

Niittykangas H. and Tervo H. (2005) Spatial variations in intergenerational transmission of self-employment, Regional Studies 39 , 319-332. Intergenerational transfers of human and non-human capital may motivate children to follow their self-employed parent. This paper analyses occupational inheritance among self-employed families in Finland. Longitudinal micro data from 1970-99 are exploited. The sample consists of children aged 0-14 years in 1970. The results show that having an entrepreneurial family background strengthens the probability of entering self-employment. The results confirm the notion of the importance of the local environment for self-employment. They also offer some evidence for the hypothesis that intergenerational transmission of self-employment is an explanation for spatial differences in self-employment.