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Education and Regional Job Creation by the Self-Employed: The English North-South Divide

Andrew Burke, Michael A. Nolan and Felix FitzRoy

Papers on Entrepreneurship, Growth and Public Policy from Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group

Abstract: Using decomposition analysis, the paper investigates the reasons why Northern England has less but higher performing self-employed businesses than the South. It finds the causes are mainly structural differences rather than due to regional variation in people's characteristics. The paper also unearths a regional dimension behind the impact of education on entrepreneurial job creation. It finds that, in the less developed North, education boosts self-employment job creation by enhancing performance per venture (quality). In the South, it reduces it by having no effect on quality alongside a negative effect on the number of people who become self-employed (quantity).

Keywords: Self-employment; job creation; North-South divide; decomposition (search for similar items in EconPapers)
JEL-codes: J23 R11 R23 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006-03
New Economics Papers: this item is included in nep-edu, nep-ent, nep-geo, nep-hrm, nep-lab and nep-ure
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