In this article, we explore how local employment growth in the urban-rural continuum is affected by economic trends in industries that comprise local economies and by growth in nearby metropolitan areas. Our county-level analyses reveal heterogeneous responses. Favorable economic changes due to a fast-growing local industry mix have the largest positive impact on self-employment growth in small metropolitan areas and the smallest positive impact in rural counties. Self-employment in rural counties is fostered by growth in nearby small metropolitan statistical areas (MSAs) and is hampered by growth in nearby large MSAs. In micropolitan counties that are close to small and medium growing MSAs, local self-employment tends to grow faster, while growth in nearby large MSAs has no effect. In urban counties, growth in a nearby large MSA is not related to local self-employment growth in the lower tiers of the urban hierarchy.
AudretschDavidKeilbachMax. 2004a. Entrepreneurship and regional growth: An evolutionary interpretation. Journal of Evolutionary Economics14:605–16.
2.
AudretschDavidKeilbachMax. 2004b. Entrepreneurship capital and economic performance. Regional Studies38 (8): 949–59.
3.
BartikTimothy J.1991. Who benefits from state and local economic development policies?Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.
4.
BerdeguéJulio A.CarriazoFernandoJaraBenjamínModregoFélixSoloagaIsidro. 2015. Cities, territories, and inclusive growth: Unraveling urban–rural linkages in Chile, Colombia, and Mexico. World Development73:56–71.
5.
BetzMichael R.FarrenMichaelLobaoLindaPartridgeMark. 2015. Coal mining, economic development, and the natural resource curse. Energy Economics50:105–16.
6.
BirchDavid.1979. The job generation process. Unpublished manuscript. MIT Program on Neighborhood and Regional Change for the Economic Development Administration, U.S. Department of Commerce.
BoarnetMarlon G.1994. An empirical model of intrametropolitan population and employment growth. Papers in Regional Science73 (2): 135–52.
9.
CarreeMartinCongregadoEmilioGolpeAntonioStelAndré van. 2015. Self-employment and job generation in metropolitan areas, 1969–2009. Entrepreneurship & Regional Development27 (3–4): 181–201.
10.
ChristiaensenLucWeerdtJoachimTodoYasuyuki. 2013. Urbanization and poverty reduction: The role of rural diversification and secondary towns. Agricultural Economics 44 (4–5): 435–47.
11.
CombesPierre-PhilippeLafourcadeMiren. 2005. Transport costs: Measures, determinants, and regional policy implications for France. Journal of Economic Geography5 (3): 319–49.
12.
DijkstraLewisGarcilazoEnriqueMcCannPhilip. 2013. The economic performance of European cities and city regions: Myths and realities. European Planning Studies21 (3): 334–54.
13.
DijkstraLewisGarcilazoEnriqueMcCannPhilip. 2015. The effects of the global financial crisis on European regions and cities. Journal of Economic Geography15 (5): 935–49.
14.
DobkinsLinda HarrisIoannidesYannis M.2001. Spatial interactions among U.S. cities: 1900–1990. Regional Science and Urban Economics31 (6): 701–31.
15.
DominaThurston. 2006. What clean break? Education and nonmetropolitan migration patterns, 1989–2004. Rural Sociology71 (3): 373–98.
16.
FarberHenry S.2011. Job loss in the Great Recession: Historical perspective from the displaced workers survey, 1984–2010. National Bureau of Economic Research Working Paper 17040, Cambridge, MA.
17.
FerréCélineFerreiraFrancisco H. G.LanjouwPeter. 2012. Is there a metropolitan bias? The relationship between poverty and city size in a selection of developing countries. The World Bank Economic Review26 (3): 351–82.
18.
GereffiGaryHumphreyJohnKaplinskyRaphael. 2001. Introduction: Globalisation, value chains and development. IDS Bulletin32 (3): 1–8.
19.
GlaeserEdward L.KerrSari PekkalaKerrWilliam R.2015. Entrepreneurship and urban growth: An empirical assessment with historical mines. Review of Economics and Statistics97 (2): 498–520.
20.
GlaeserEdward L.KohlhaseJanet E.2004. Cities, regions and the decline of transport costs. Papers in Regional Science83 (1): 197–228.
21.
GoetzStephanFlemingDavid A.RupasinghaAnil. 2012. The economic impacts of self-employment. Journal of Agricultural and Applied Economics44 (3): 315–21.
22.
HelsleyRobert W.StrangeWilliam C. 2011. Entrepreneurs and cities: Complexity, thickness and balance. Regional Science and Urban Economics41 (6): 550–59.
23.
HendersonJ. Vernon. 1997. Medium size cities. Regional Science and Urban Economics27 (6): 583–612.
24.
HenryMark S.BarkleyDavid L.BaoShuming. 1997. The hinterland’s stake in metropolitan growth: Evidence from selected southern regions. Journal of Regional Science37 (3): 479–501.
25.
HenryMark S.SchmittBertrandKristensenKnudBarkleyDavid L.BaoShuming. 1999. Extending Carlino-Mills models to examine urban size and growth impacts on proximate rural areas. Growth and Change30 (4): 526–48.
26.
HenryMark S.SchmittBertrandPiguetVirginie. 2001. Spatial econometric models for simultaneous systems: Application to rural community growth in France. International Regional Science Review24 (2): 171–93.
27.
IrwinElena G.IssermanAndrew M.KilkennyMaureenPartridgeMark D.2010. A century of research on rural development and regional issues. American Journal of Agricultural Economics92 (2): 522–53.
28.
IssermanAndrew M.2005. In the national interest: Defining rural and urban correctly in research and public policy. International Regional Science Review28 (4): 465–99.
29.
KrugmanPaul. 1991. Increasing returns and economic geography. Journal of Political Economy99 (3): 483–99.
30.
LichterDaniel T.BrownDavid L.2011. Rural America in an urban society: Changing spatial and social boundaries. Annual Review of Sociology37:565–92.
31.
LichterDaniel T.McLaughlinDiane K.CornwellGretchen T.1995. Migration and the loss of human resources in rural America. In Investing in people: The human capital needs of rural America, eds. Lionel J. Beaulieu and David Mulkey, 235–56. Boulder, CO: Westview Press.
32.
LowSarahHendersonJasonWeilerStephan. 2005. Gauging a region’s entrepreneurial potential. Economic Review-Federal Reserve Bank of Kansas City90 (3): 61–89.
33.
MaleckiEdward. 1994. Entrepreneurship in regional and local development. International Regional Science Review16 (1&2): 119–53.
34.
MyrdarGunnar. 1963. Economic theory and underdeveloped regions. London: Methuen and Co., Ltd.
35.
PartridgeMark. 2010. The duelling models: NEG vs amenity migration in explaining U.S. engines of growth. Papers in Regional Science89 (3): 513–36.
36.
PartridgeMarkBollmanRay D.OlfertM. RoseAlasiaAlessandro. 2007. Riding the wave of urban growth in the countryside: Spread, backwash, or stagnation?Land Economics83 (2): 128–52.
37.
PartridgeMarkRickmanDan S.AliKamarOlfertM. Rose. 2008. Lost in space: Population growth in the American hinterlands and small cities. Journal of Economic Geography8 (6): 727–57.
38.
PartridgeMarkRickmanDan S.AliKamarOlfertM. Rose. 2009. Do new economic geography agglomeration shadows underlie current population dynamics across the urban hierarchy?Papers in Regional Science88 (2): 445–66.
39.
PartridgeMark D.RickmanDan S.AliKamarOlfertM. Rose. 2010. The spatial dynamics of factor price differentials: Productivity or consumer amenity driven?Regional Science and Urban Economics40:440–52.
40.
RupasinghaAnilGoetzStephan. 2013. Self-employment and local economic performance: Evidence from U.S. counties. Papers in Regional Science92 (1): 141–61.
41.
SchaefferPeter V.KahsaiMulugeta S.JacksonRandall W.2013. Beyond the rural-urban dichotomy: Essay in honor of Professor A. M. Isserman. International Regional Science Review36 (1): 81–96.
42.
SchmittBertrandHenryMark S.2000. Size and growth of urban centers in French labor market areas: Consequences for rural population and employment. Regional Science and Urban Economics30 (1): 1–21.
43.
StephensHeather M.PartridgeMark. 2011. Do entrepreneurs enhance economic growth in lagging regions?Growth and Change42 (4): 431–65.
44.
StephensHeather M.PartridgeMark D.FaggianAlessandra. 2013. Innovation, entrepreneurship and economic growth in lagging regions. Journal of Regional Science53 (5): 778–812.
45.
TsvetkovaAlexandraPartridgeMark. 2016. Economics of modern energy boomtowns: Do oil and gas shocks differ from shocks in the rest of the economy?Energy Economics59 (1): 81–95.
46.
van PraagC. MirjamVerslootPeter H.2007. What is the value of entrepreneurship? A review of recent research. Small Business Economics29:351–82.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
