The Effects of Rural and Urban Areas on Time Allocated to Self-Employment: Differences between Men and Women

Abstract

This study investigates the association of the rural–urban divide and the time individuals allocate to self-employment. The empirical analysis uses fixed effects modelling on data from the UK Household Longitudinal Survey over the period 2009–2019. The study identifies significant differences in the time men and women allocate to self-employment between rural and urban areas according to their career age group. While men and women tend to allocate more time to selfemployment in their senior career age when residents of urban areas, the time they allocate to self-employment between rural and urban areas in early- and mid-career age differs markedly. More importantly, we find that significant differences exist not only between residents of rural and urban areas, but also between residents of these areas and in-migrants to these areas. We find a significant positive effect on the time senior career age women who migrate to rural areas allocate to self-employment. In contrast, we find that early career men who move from rural to urban areas allocate significantly more time to self-employment. The results reveal the existence of complex dynamics between gender and age, which affect the allocation of time to self-employment between rural and urban areas.