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A Wage-Efficiency Spatial Model for US Self-Employed Workers

J. Ignacio Gimenez-Nadal (), José Alberto Molina () and Jorge Velilla ()
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J. Ignacio Gimenez-Nadal: University of Zaragoza

Authors registered in the RePEc Author Service: Jose Ignacio Gimenez-Nadal ()

No 9634, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper, we study self-employment in a theoretical setting derived from wage-efficiency spatial models, where leisure and effort at work are complementary. We develop a spatial model of self-employment in which effort at work and commuting are negatively related, and thus the probability of self-employment decreases with "expected" commuting time. We use time-use data from the American Time Use Survey 2003-2014 to analyze the spatial distribution of self-employment across metropolitan areas in the US, focusing on the relationship between commuting time and the probability of self-employment. Our empirical results show that the probability of self-employment is negatively related to the "expected" commuting time, giving empirical support to our theoretical model. Furthermore, we propose a GIS model to show that commuting and self-employment rates are, in relation to unemployment rates, negatively related.

Keywords: leisure; commuting; self-employment; wage-efficiency; American Time Use Survey (search for similar items in EconPapers)
JEL-codes: J21 J22 R12 R41 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2016-01
New Economics Papers: this item is included in nep-ent, nep-geo, nep-lma and nep-ure
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