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Unemployment and entrepreneurship: A cyclical relation?

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  • Faria, João Ricardo
  • Cuestas, Juan Carlos
  • Gil-Alana, Luis A.

Abstract

This paper presents a cyclical model for unemployment and entrepreneurship. The estimated periodicity of the cycles for the US, the UK, Spain and Ireland is between 5 and 10Â years, and the orders of integration are smaller (greater) than 1 if the underlying disturbances are autocorrelated (white noise), corresponding to dampen cycles (limit cycle).

Suggested Citation

  • Faria, João Ricardo & Cuestas, Juan Carlos & Gil-Alana, Luis A., 2009. "Unemployment and entrepreneurship: A cyclical relation?," Economics Letters, Elsevier, vol. 105(3), pages 318-320, December.
    • Handle: RePEc:eee:ecolet:v:105:y:2009:i:3:p:318-320
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    References listed on IDEAS

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    6. Faria, João Ricardo & Cuestas, Juan Carlos & Mourelle, Estefanía, 2010. "Entrepreneurship and unemployment: A nonlinear bidirectional causality?," Economic Modelling, Elsevier, vol. 27(5), pages 1282-1291, September.
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    Cited by:

    1. João Ricardo Faria & Juan Carlos Cuestas & Luis Gil-Alana & Estefania Mourelle, 2021. "Self-employment by gender in the EU: convergence and clusters," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(3), pages 717-741, August.
    2. Slesman, Ly & Abubakar, Yazid Abdullahi & Mitra, Jay, 2021. "Foreign direct investment and entrepreneurship: Does the role of institutions matter?," International Business Review, Elsevier, vol. 30(4).
    3. Faria, João Ricardo & Cuestas, Juan Carlos & Mourelle, Estefanía, 2010. "Entrepreneurship and unemployment: A nonlinear bidirectional causality?," Economic Modelling, Elsevier, vol. 27(5), pages 1282-1291, September.
    4. Halicioglu, Ferda & Yolac, Sema, 2015. "Testing the impact of unemployment on self-employment: empirical evidence from OECD countries," MPRA Paper 65026, University Library of Munich, Germany.
    5. , Aisdl, 2017. "Problems and prospects of women entrepreneurship with special reference to MSMEs in the state of Gujarat," OSF Preprints u7jkb, Center for Open Science.
    6. Elisabeth Lopez-Perez & Ana Rodriguez-Santiago & Emilio Congregado, 2020. "Persistence in Self-Employment Rates before the Great Lockdown: The Case of the UK," Sustainability, MDPI, vol. 12(16), pages 1-13, August.
    7. Sorin I. Blaga, 2020. "A Conceptual Model of Social Entrepreneurial Motivation," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(4), pages 453-471, December.
    8. Porras-Arena, M. Sylvina & Martín-Román, Ángel L., 2019. "Self-employment and the Okun's law," Economic Modelling, Elsevier, vol. 77(C), pages 253-265.
    9. Stephen Dobson & John Goddard, 2008. "Strategic Behaviour and Risk Taking in Football," Working Papers 0805, University of Crete, Department of Economics.
    10. Mónica Carmona & Emilio Congregado & Antonio A. Golpe, 2012. "Comovement Between Self-Employment and Macroeconomic Variables," SAGE Open, , vol. 2(2), pages 21582440124, May.
    11. Roy Thurik, 2014. "Entrepreneurship and the business cycle," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-90, October.
    12. Albert Sumell, 2020. "Overdose Deaths and Entrepreneurial Activity," Economies, MDPI, vol. 8(1), pages 1-10, March.
    13. Hashmat Khan & Pythagoras Petratos, 2016. "Entrepreneurship and the Business Cycle: Stylized Facts from U.S. Venture Capital Activity," Carleton Economic Papers 16-09, Carleton University, Department of Economics.
    14. João Leitão & João Capucho, 2021. "Institutional, Economic, and Socio-Economic Determinants of the Entrepreneurial Activity of Nations," Administrative Sciences, MDPI, vol. 11(1), pages 1-32, March.
    15. Sebastian Șipoș-Gug, 2012. "Unemployment as a factor of entrepreneurial activity," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(46bis), pages 169-186, December.
    16. Hoch, Felix & Lohwasser, Todor S., 2019. "The influence of institutions on venture capital: How transaction costs, uncertainty, and change affect new ventures," Discussion Papers of the Institute for Organisational Economics 9/2019, University of Münster, Institute for Organisational Economics.
    17. Frank M. Fossen, 2021. "Self-employment over the business cycle in the USA: a decomposition," Small Business Economics, Springer, vol. 57(4), pages 1837-1855, December.
    18. Mabel Pisá-Bó & José Fernando López-Muñoz & Josefina Novejarque-Civera, 2021. "The ever-changing socioeconomic conditions for entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1335-1355, September.

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