Hannu Tervo - Academia.edu (original) (raw)

Papers by Hannu Tervo

Do 'People Follow Jobs' or do 'Jobs Follow People'? A Causality Issue in Urban Economics

Urban Studies, 1982

In urban economics, as in regional economics, a basic causality question is whether `people follo... more In urban economics, as in regional economics, a basic causality question is whether `people follow jobs' or `jobs follow people' . Regional economists consider this an essentially dynamic issue when they examine the relationship between migration (people) and changes in employment or employment growth (jobs) using either interstate or interurban data (i .e ., movements of people and jobs). In an earlier study (Steinnes, 1978b) the author has shown that existing interurban models take different views about the people/jobs causality question, but direct statistical testing, using the same methodology to be employed inthis paper, reveals that 'jobs (employment growth) follow people (migration)', which is contrary to the prevailing view in the regional economics literature . In urban economics a similar people/jobs causality issue exists in the context of intra-urban core-periphery movements : what is the nature of the relationship between the suburbanization of residences (people) and of firms (jobs) over time? Recent studies (Cooke, 1978 and Steinnes, 1977) of changes in the intra-urban location of employment (manufacturing) and residents have both concluded, using different data bases and variable specifications, that 'jobs follow people' . This result is diametrically opposed to the prevailing view of causality implicit in the traditional static theoretical equilibrium models (e .g ., Alonso, 1964 and Kain, 1962) which attempt to explain residential location on the basis of the journey-to-work . Contrary to the approach to be taken in this paper, these models were derived assuming employment location exogenous (and usually all in the core) and estimated using cross-section data . More recently, interest in urban economics has shifted from the journey-to-work emphasis to concentration on

A Micro-Level Approach to the Analysis of the Displacement Effects of Regional Incentive Policy: The Case of Finland

Regional Studies, 1989

TERVO H. (1989) A micro-level approach to the analysis of the displacement effects of regional in... more TERVO H. (1989) A micro-level approach to the analysis of the displacement effects of regional incentive policy: the case of Finland, Reg. Studies 23, 511–521. This paper analyses the impact of regional incentive policy from the point of view of efficiency. Contrary to usual practice, a micro-level approach is used. Four possibilities for displacement effects to arise are proposed: displacement may be either direct or indirect and simultaneously directed either at existing or ‘potential’ production. The empirical results concerning the situation of Finland suggest that regional policy has been more than a zero-sum game between the assisted and non-assisted areas during the period 1975–81. TERVO H. (1989) Une micro-analyse des effets de deplacement de la politique d'incitations a finalite regionale: cas d'etude de la Finlande, Reg. Studies 23, 511–521. Cet article analyse les effets de la politique d'incitations a finalite regionale du point de vue de l'efficience. A l'encontre de la pratique recue il s'ag...

Migration and Labour Market Adjustment: Empirical evidence from Finland 1985‐90

International Review of Applied Economics, 2000

... the size of high-unemployment regions, as measured in terms of the labour force, decreases ..... more ... the size of high-unemployment regions, as measured in terms of the labour force, decreases ... Opening the references page in a new window requires javascript to be enabled in your ... Related content: In this: publication; By this: publisher; In this Subject: Economics; By this author ...

Return and onward migration of highly educated: evidence from residence spells of Finnish graduates

... Contact information: School of Business and Economics, PO Box 35, FI-40014 University of Jyvä... more ... Contact information: School of Business and Economics, PO Box 35, FI-40014 University of Jyväskylä, Finland. Emails: mika.haapanen@econ.jyu.fi & hannu.tervo@econ.jyu.fi. ... Page 7. 6 Two forces operate in the opposite direction during the residence spell (cf. Huff and ...

Regional Policy Lessons from Finland

Regional Disparities in Small Countries

The Finnish economy and society has long been dominated by primary production. Post-war economic ... more The Finnish economy and society has long been dominated by primary production. Post-war economic development was rapid and welfare gaps between the much more developed economies and Finland narrowed and were even partly reversed. Rapid economic expansion together with structural change has had the effect of centralizing both economic activity and population. The trend has been towards the southern and central regions where the metropolitan area of Helsinki and most of the other larger towns and urban centres are located. Together with vigorous technological progress in agriculture and forestry the rapid urbanization and industrialization of the 1960s and 1970s the fastest in Europe altered the status of the primary industries, creating enormous challenges for regional policymaking. Early regional policy based on building up infrastructure, decentralization of manufacturing industries and the creation of a welfare state was fairly successful, although it could not prevent huge out-migration from rural areas in the 1960s and early 1970s. While regional development was fairly even in the 1970s and 1980s, the 1990s were a time of great economic flux and drastic structural change. Finland was hit by a severe recession in 1991-93 and both production and employment fell sharply. Rapid economic recovery was based on export and knowledge-based industries. The investment in know-how turned out to be successful: several parallel analyses of international competitiveness show that Finland was one of the most dynamic and competitive economies in the world in the late 1990s and early 2000s. Although Finland as a whole flourished in the late 1990s, this was not true across all its regions. The positive aggregate development experienced by Finland was based on uneven regional growth, especially after the severe recession of the early 1990s. Regional competitiveness varied greatly, the most competitive regions being those containing an urban centre and especially those with a university (Huovari et al. 2001). Migration into the major centres of population accelerated in the late 1990s, and many of the smaller urban areas even saw a net loss in population. In recent

This is an electronic reprint of the original article. This reprint may differ from the original ... more This is an electronic reprint of the original article. This reprint may differ from the original in pagination and typographic detail.

Liitetaulukko. Testausproseduurin taustalla olevan rajoittamattoman mallin estimoidut regressioke... more Liitetaulukko. Testausproseduurin taustalla olevan rajoittamattoman mallin estimoidut regressiokertoimet β i eri maaseuturyhmissä. *** Tilastollisesti merkitsevä 1 prosentin riskitasolla, ** Tilastollisesti merkitsevä 5 prosentin riskitasolla, * Tilastollisesti merkitsevä 10 prosentin riskitasolla Huom! Taulukossa ei ole esitetty estimoituja autoregressiivisiä kertoimia γ eikä maakuntakohtaisia vakiotermejä α i kompaktiuden saavuttamiseksi. Estimoidut regressiokertoimet β i ja niiden tilastollinen merkitsevyys Maakunta ja maakuntaryhmä I-IIII Maaseutu kokonaisuutena (4-7) Maaseudun paikalliskeskukset (4) Kaupungin läheinen maaseutu (5) Ydinmaaseutu (6) Harvaan asuttu maaseutu (7) Vaikutussuunta Vaikutussuunta Vaikutussuunta Vaikutussuunta Vaikutussuunta Kaupungit => maaseutu Kaupungit => maaseutu Kaupungit => maaseutu Kaupungit => maaseutu Kaupungit => maaseutu Kaupungit => maaseutu Kaupungit => maaseutu Kaupungit => maaseutu Kaupungit => maaseutu Kaupungit => maaseutu

ABSTRACT. The paper aims to analyse regional differences in migration behaviour and labour market... more ABSTRACT. The paper aims to analyse regional differences in migration behaviour and labour market adjustment in Finland. The analysis focuses on individuals belonging to the labour force both in 1985 and 1990. The data is a one percent sample from the Finnish longitudinal census file. Three outcomes can be deduced from the results. First, regional migratory behaviour has an equilibrating role in regional labour markets, albeit not very strong. Second, the chosen regions differ from each other quite little by migratory behaviour in general. Third, the effect of personal unemployment on migratory behaviour is weaker in northern Finland and so the future prospects of high-unemployment areas are further worsening.

Effects of Unemployment on New Firm Formation

Abstract. This paper aims to provide a comprehensive insight into the role that unemployment play... more Abstract. This paper aims to provide a comprehensive insight into the role that unemployment plays in influencing new firm formation. Panel data models and micro-level data are used to help achieve this objective. We endeavour to identify simultaneously the separate effects of personal, regional and national unemployment on new firm formation in Finland for the period 1987-1995. The results indicate considerable evidence for a positive and non-linear effect of personal unemployment on the likelihood of an individual to become an entrepreneur. The findings also indicate that the economic situation has an effect on firm formation: times of low unemployment and business prosperity favour entrepreneurship. On the other hand, the analysis gives no clear evidence of the regional unemployment situation affecting the likelihood of founding a business.

Self-employment in later life may be either a form of partial retirement or a career option. The ... more Self-employment in later life may be either a form of partial retirement or a career option. The purpose of this paper is to analyze the factors that lead individuals to enter selfemployment at older ages in different types of labor markets in Finland, viz., rural and urban areas. The principal focus is on the intertwined effects of the local labor market conditions, previous self-employment experience and education. A large longitudinal data set and interactive probit models are utilized to examine transitions of individuals aged 55-74 to selfemployment. The results show that prior self-employment experience and higher education foster self-employment at older ages, while a high regional unemployment rate prevents it. Due to a lower level of demand and lower educational capital, self-employment is less tempting in rural than in urban areas. The results show novice entrepreneurship in later life to be rare. Bridge employment based on entrepreneurship may be advantageous to the caree...

Yrityspalvelujen levinneisyys ja sijaintikäyttäytyminen

The paper aims to analyse regional differences in migration behaviour and labour market adjustmen... more The paper aims to analyse regional differences in migration behaviour and labour market adjustment in Finland. The analysis focuses on individuals belonging to the labour force both in 1985 and 1990. The data is a one percent sample from the Finnish longitudinal census file. Three outcomes can be deduced from the results. First, regional migratory behaviour has an equilibrating role in regional labour markets, albeit not very strong. Second, the chosen regions differ from each other quite little by migratory behaviour in general. Third, the effect of personal unemployment on migratory behaviour is weaker in northern Finland and so the future prospects of high-unemployment areas are further

To date, few empirical studies have attempted to highlight the impact of the socio-economic chara... more To date, few empirical studies have attempted to highlight the impact of the socio-economic characteristics of older entrepreneurs according to whether they are driven by necessity or opportunity. Tervo and Haapanen contribute to the economics of ageing by showing that opportunity- and necessity-driven senior entrepreneurs differ in terms of socio-economic characteristics. This chapter utilizes a longitudinal data set from Finland. Individuals aged between 55 and 70 entering self-employment are grouped in terms of pull and push motivations. Profiles of entrepreneurs are developed using personal, family, and environmental characteristics. The results show that opportunity-driven older self-employed workers are more likely to be highly educated males, whereas necessity-driven older self-employed workers are often less educated females and individuals who live in rural areas.

Self-employment is an important option in the work careers of many. It may be seen as a learning ... more Self-employment is an important option in the work careers of many. It may be seen as a learning process illustrated for example in the social development model by Gibb and Ritchie (1982) and in the model of entrepreneurial careers by Dyer (1994). In the former, entrepreneurship is mainly seen in terms of the situations which individuals encounter and the social groups to which they relate. Among many others, family background, education and work experience have an effect directly, or indirectly through intentions (see Krueger and Carsrud 1993)on becoming self-employed. The children of parents owned a business are more likely to see such a career as more acceptable than working for someone else. An individual who has a self-employed parent possess a kind of 'entrepreneurial human capital'. Family background may provide self-confidence and social support, a supply of resources needed by the business, and strategic capacity to learn and organise for new activities. The movemen...

This paper studies the migration behaviour of the unemployed in Finland, and analyses the causal ... more This paper studies the migration behaviour of the unemployed in Finland, and analyses the causal effect of moving on individual employment status. In 1994 17 per cent of the labour force was unemployed and the unemployment rate exhibited a very slow decline in 1994-96. Over half of those who were unemployed at the end of 1994 were still unemployed two years later. The propensity to find a job is somewhat greater among migrants. However, the positive effect of moving diminishes once other personal characteristics are accounted for. Moreover, when endogenous migrant selectivity is controlled for, an insignificant or even a negative effect on employment status emerges. This indicates that the better “quality” of the migrants (e.g. age, education, human capital and unobserved ability), rather than the act of moving itself, causes an improvement in re-employability. Hence, migration alone may not be a very effective mechanism for alleviating individual unemployment.

Kulttuuritoiminta ja alueellinen erilaistuminen : kulttuuritoiminnan rahoitus Suomen kunnissa 2010-luvulla

Age is an important factor in entrepreneurship. The paths into entrepreneurship at a later age ma... more Age is an important factor in entrepreneurship. The paths into entrepreneurship at a later age may be varied. Self-employment in later life may be either a form of partial retirement or a career option. Older individuals may also be pushed into self-employment. The focus of this paper is on the career choices of older individuals and their background motivations in Finland. The purpose is to analyse the factors and motives in terms of the push and pull dichotomy that lead individuals to enter self-employment at older ages in different types of labour markets in Finland, viz., rural and urban areas. Although some studies have focused on transitions to self-employment among older workers, questions about the motives and particularly about the background and circumstances of these people, including the regional environment, still need clarification. A large longitudinal data set is utilised to examine the transitions of individuals aged 55-74 to self-employment. The results suggest tha...