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Self-employment and the business cycle: evidence from Poland

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  • Stanislaw Cichocki

Abstract

Two reasons for undertaking self-employment can be distinguished. The first treats self-employment as the only way of avoiding unemployment. According to this view self-employment is countercylical and acts as a buffer. The second reason emphasises the entrepreneurial, risk-taking nature of self-employment, which according to this view is procyclical and similar to wage employment. This article examines these views by looking at labour market flows obtained from the Polish LFS. As the self-employed account for about 20% of the working population in Poland knowledge about their behaviour over the business cycle is of particular importance. The results point to countercyclical behaviour of self-employed farmers and the entrepreneurial nature of own-account workers and entrepreneurs with employees.

Suggested Citation

  • Stanislaw Cichocki, 2012. "Self-employment and the business cycle: evidence from Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 24(2), pages 219-239, January.
    • Handle: RePEc:taf:pocoec:v:24:y:2012:i:2:p:219-239
    DOI: 10.1080/14631377.2012.675157
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    Cited by:

    1. Małgorzata Wosiek & Adam Czudec & Ryszard Kata, 2022. "Relationship between unemployment and new business registrations at the local level: the case of Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 34(8), pages 1083-1108, November.
    2. Malgorzata Wosiek, 2021. "Unemployment and new firm formation: evidence from Polish industries at the regional level," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(4), pages 765-782, December.

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