The Quest to Understand Self-employment in American Metropolitan Areas

Abstract

The mechanisms shaping a shift in intrametropolitan self-employment remain poorly understood. In response, this study aims to examine shifts in both central-city and suburban self-employment by integrating the changing forces of intrametropolitan economy and population with their economic interdependence within an entire metropolitan area. Using a change-score model, data collected over two time-periods (1980—90 and 1990—2000) are pooled. The analysis shows that a decline in intrametropolitan manufacturing employment, which can be understood as an aspect of local economic restructuring, leads to an increase in intrametropolitan self-employment. Also, the data suggest that a rise in metropolitan-level immigrant population contributes to the growth of central-city self-employment. Moreover, this paper demonstrates that a shift in central-city self-employment is affected by both central-city and suburban economic transformations.