Does Population Density have Any Effect On Entrepreneurial Rates? Evidence From US Counties

Hatice Karahan

Journal of Social and Development Sciences, 2013, vol. 4, issue 3, 123-130

Abstract: Inspired from the theory of division of labor, I test the hypothesis that self-employment rate declines with a greater density of the population. The motivation is the existence of a huge variation of population densities and a considerable difference in self-employment rates across US states and counties. Results show that a negative and statistically significant impact of population density is present. Hence, people who are located in less crowded areas are more likely to be self-employed. Considering the relatively low availability of good-matching jobs in smaller places, self-employment can be explained as a failure of the size of the market place.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:rnd:arjsds:v:4:y:2013:i:3:p:123-130

DOI: 10.22610/jsds.v4i3.742

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