Saridakis, George, Mendoza Gonzalez, Miguel A., Hand, Chris and Muñoz Torres, Rebeca I. (2020) Do regional self-employment rates converge in the UK? Empirical evidence using club-clustering algorithm. The Annals of Regional Science, 65, pp. 179-192. ISSN (print) 0570-1864
Abstract
This paper examines the dynamics of self-employment rates overall and by gender across the UK during the period 2004-2016. Specifically, using the panel convergence methodology suggested by Phillips and Sul (2007) we investigate whether self-employment rates can be characterized by a process where all regions tend to the same equilibrium (global or full convergence) or , if not, whether there is one or more clusters of regions with the same equilibrium (convergence clubs). We find that there is no global regional convergence in total and gender specific self-employment rates. However, two convergence clubs of regions with lower self-employment rates are found along with a group of non-convergent regions which have higher self-employment rates and somewhat higher rates of growth in self-employment. We also show that that gender differences in convergence patterns across UK exist.
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