LOCAL LABOR MARKET DYNAMICS AND SELF-EMPLOYMENT IN RURAL NEW ENGLAND

As rates of self-employment and entrepreneurial activity grow in the U.S., sociologists are beginning to consider the causes and consequences of this form of employment more seriously. While the sociological contributions to entrepreneurial research take seriously the social context in which self-employment occurs, few studies focus explicitly on the effects of social and economic contexts on rates of self-employment in particular regions. I fill this gap by examining the effects of a variety of local labor-market, population, and economic characteristics on county-level self-employment rates in three predominantly rural states: Maine, New Hampshire, and Vermont. I find that counties with higher proportions of their labor forces in extractive industries and that have experienced greater declines in the primary sector had higher rates of poverty and unemployment; however, self-employment is negatively related to county-level poverty rates, indicating that self-employment may provide opportunities for those in rural counties undergoing economic transformations.