Unlocking Rural Innovation

Annex B. Regression analysis on the probability of starting a firm for young entrepreneurs

Table A B.1. Probability of starting a firm for young entrepreneurs, 2019

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Young start-up entrepreneurship	All	All	All	All	All	Cities	Towns and suburbs	Rural
Towns and suburbs	-0.073***	-0.055**	-0.048*	-0.049*	-0.038
	[0.025]	[0.025]	[0.026]	[0.026]	[0.025]
Rural areas	-0.114***	-0.093***	-0.091***	-0.102***	-0.086***
	[0.026]	[0.027]	[0.028]	[0.030]	[0.030]
Female		-0.124***	-0.115***	-0.081***	-0.077***	-0.054*	-0.098***	-0.099**
		[0.019]	[0.021]	[0.020]	[0.021]	[0.029]	[0.029]	[0.044]
Unemployed (last year)		0.774***	0.792***	0.813***	0.808***	0.852***	0.693***	0.867***
		[0.046]	[0.045]	[0.045]	[0.045]	[0.059]	[0.062]	[0.096]
In training (last year)		0.432***	0.420***	0.428***	0.429***	0.534***	0.310***	0.177
		[0.050]	[0.052]	[0.052]	[0.051]	[0.059]	[0.080]	[0.109]
Foreigner			-0.071**	-0.077***	-0.075**	-0.094**	-0.067	0.022
			[0.029]	[0.030]	[0.029]	[0.040]	[0.055]	[0.074]
Secondary education	0.194***	0.234***	0.238***	0.223***	0.225***	0.133***	0.285***	0.305***
	[0.031]	[0.034]	[0.037]	[0.036]	[0.035]	[0.045]	[0.054]	[0.068]
Tertiary education	0.381***	0.447***	0.467***	0.418***	0.420***	0.333***	0.510***	0.451***
	[0.038]	[0.043]	[0.046]	[0.045]	[0.044]	[0.061]	[0.060]	[0.089]
Father’s education: primary			-0.006	-0.003	-0.002	-0.045	0.005	0.015
			[0.052]	[0.052]	[0.052]	[0.104]	[0.083]	[0.076]
Father’s education: secondary			0.104*	0.110*	0.111**	0.139	0.065	0.138**
			[0.055]	[0.056]	[0.056]	[0.102]	[0.077]	[0.067]
Father’s education: tertiary			0.039	0.047	0.042	0.016	0.052	0.113
			[0.059]	[0.060]	[0.060]	[0.108]	[0.091]	[0.112]
Mother’s education: primary			-0.044	-0.030	-0.025	-0.139	0.073	0.013
			[0.058]	[0.058]	[0.058]	[0.104]	[0.089]	[0.062]
Mother’s education: secondary			0.023	0.039	0.040	-0.008	0.065	0.148**
			[0.049]	[0.049]	[0.049]	[0.098]	[0.067]	[0.063]
Mother’s education: tertiary			0.068	0.087	0.088	-0.062	0.293***	0.112
			[0.053]	[0.054]	[0.054]	[0.088]	[0.081]	[0.098]
Work from home				-0.154***	-0.144***	-0.166***	-0.090***	-0.166***
				[0.020]	[0.021]	[0.034]	[0.024]	[0.033]
Work weekends and nights				0.116***	0.118***	0.135***	0.105**	0.095**
				[0.020]	[0.020]	[0.032]	[0.041]	[0.045]
Looking for a job				0.055	0.052	0.057	-0.014	0.158*
				[0.042]	[0.042]	[0.069]	[0.061]	[0.086]
Constant	-2.719***	-2.793***	-2.769***	-2.569***	-2.723***	-2.610***	-2.977***	-2.994***
	[0.048]	[0.057]	[0.066]	[0.153]	[0.178]	[0.290]	[0.319]	[0.270]
Country fixed effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Socio-economic fixed effects	No	No	Yes	Yes	Yes	Yes	Yes	Yes
Sector fixed effects	No	No	No	No	Yes	Yes	Yes	Yes
Occupation fixed effects	No	No	No	No	Yes	Yes	Yes	Yes
Observations	1 033 674	1 033 674	942 312	939 840	939 430	294 287	349 021	295 814

Note: Reported coefficients are from a probit model with standard errors clustered at a regional level. The reference group for parents’ education level are parents who do not live with individuals at home. Robust standard errors in brackets.

*** p<0.01, ** p<0.05, * p<0.1.

Source: Eurostat (n.d.[4]), European Union Labour Force Survey (EU-LFS), https://ec.europa.eu/eurostat/web/microdata/european-union-labour-force-survey.