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Does Self-Employment Reduce Unemployment? Author info | Abstract | Publisher info | Download info | Related research | Statistics Audretsch, David B
Carree, Martin A
Thurik, A R Roy
van Stel, A J
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This paper investigates the dynamic interrelationship between self-employment and unemployment rates. On the one hand, unemployment rates may stimulate start-up activity of self-employed. On the other hand, higher rates of self-employment may indicate increased entrepreneurial activity reducing unemployment in subsequent periods. These two effects have resulted in considerable ambiguities about the interrelationship between unemployment and entrepreneurial activity. This paper introduces a two equation vector autoregression model capable of reconciling these ambiguities and tests it for data of 23 OECD countries over the period 1974-2002. The empirical results confirm the two distinct relationships between unemployment and self-employment, i.e. ‘refugee’ and ‘entrepreneurial’ effects. We also find that the ‘entrepreneurial’ effects are considerably stronger than the ‘refugee’ effects.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
5057.
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Date of creation: May 2005Date of revision:
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Keywords: entreprenuership Gibrat's Law Other versions of this item:
Article Thurik, A. Roy & Carree, Martin A. & van Stel, André & Audretsch, David B., 2008.
"Does self-employment reduce unemployment? ,"
Journal of Business Venturing ,
Elsevier, vol. 23(6), pages 673-686, November.
[Downloadable!] (restricted) Paper André van Stel & Roy Thurik & David Audretsch & Martin Carree, 2007.
"Does self-employment reduce unemployemt? ,"
Scales Research Reports
H200709, EIM Business and Policy Research.
[Downloadable!] A. Roy Thurik & Martin A. Carree & Andre van Stel & David B. Audretsch, 2007.
"Does Self-Employment reduce Unemployment? ,"
Jena Economic Research Papers in Economics
2007-089, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek.
[Downloadable!] André van Stel & Roy Thurik & David Audretsch & Martin Carree, 2005.
"Does Self-Employment Reduce Unemployment? ,"
Scales Research Reports
N200504, EIM Business and Policy Research.
[Downloadable!] David B. Audretsch & Roy Thurik & Andre van Stel & M.A. Carree, 2006.
"Does Self-Employment Reduce Unemployment? ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2005-07, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
[Downloadable!] Find related papers by JEL classification: L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
This paper has been announced in the following NEP Reports :
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"Gibrat, Galton and Job Generation ,"
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"The link between firm births and job creation: Is there a Upas Tree effect? ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2004-33, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
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"Competition and Corporate Performance ,"
Journal of Political Economy ,
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"The Geography of Firm Births in Germany ,"
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"Entrepreneurial engagement levels in the European Union ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2005-29, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
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"New Firm Formation and Regional Development: The Italian Case ,"
Regional Studies ,
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"The Effects of New Business Formation on Regional Development over Time ,"
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2004-36, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
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"Gibrat's Legacy ,"
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Tinbergen Institute Discussion Papers
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André van Stel & Roy Thurik & Sander Wennekers & Martin Carree, 2007.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Rui Baptista & Paulo Madruga & Vitor Escaria, .
"Entrepreneurship, Regional Development and Job Creation: the Case of Portugal ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2005-06, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
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Antonio Golpe & Andre van Stel, 2007.
"Self-Employment and Unemployment in Spanish Regions in the Period 1979-2001 ,"
Jena Economic Research Papers in Economics
2007-021, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek.
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André van Stel & Roy Thurik & Ingrid Verheul & Lendert Baljeu, 2007.
"The Relationship between Entrepreneurship and Unemployment in Japan ,"
Tinbergen Institute Discussion Papers
07-080/3, Tinbergen Institute, revised 14 Jul 2008.
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"Post-Materialism Influencing Total Entrepreneurial Activity Across Nations ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2005-20, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
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Uhlaner, L.M. & Thurik, A.R., 2006.
"Postmaterialism Influencing Total Entrepreneurial Activity across Nations ,"
Research Paper
ERS-2006-062-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
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Journal of Evolutionary Economics ,
Springer, vol. 17(2), pages 161-185, April.
[Downloadable!] (restricted) Isabel Grilo & Roy Thurik, 2005.
"Entrepreneurial engagement levels in the European Union ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2005-29, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
[Downloadable!]
Other versions: Andre van Stel & Lendert Baljeu & Roy Thurik & Ingrid Verheul, 2006.
"The Contribution of Business Ownership in Bringing Down Unemployment in Japan ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2006-05, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
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Martin Carree & André van Stel & Roy Thurik & Sander Wennekers, 2007.
"The Relation between Economic Development and Business Ownership revisited ,"
Tinbergen Institute Discussion Papers
07-022/3, Tinbergen Institute.
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"Firms and Profits in the Retail Industry: Blue Ocean versus Competitive Strategy ,"
Scales Research Reports
H200801, EIM Business and Policy Research.
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"Explaining Female and Male Entrepreneurship at the Country Level ,"
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ERS-2005-089-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
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Other versions:
Ingrid Verheul & Andre van Stel & Roy Thurik, 2005.
"Explaining female and male entrepreneurship at the country level ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2005-34, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
[Downloadable!] Ingrid Verheul & Andre van Stel & Roy Thurik, 2005.
"Explaining female and male entrepreneurship at the country level ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2005-39, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
[Downloadable!] André van Stel & Roy Thurik & Ingrid Verheul, 2006.
"Explaining female and male entrepreneurship at the country level ,"
Scales Research Reports
N200510, EIM Business and Policy Research.
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"Self-Employment - a Way to End Unemployment? : Empirical Evidence from German Pseudo-Panel Data ,"
Discussion Papers of DIW Berlin
661, DIW Berlin, German Institute for Economic Research.
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Other versions: Roy Thurik & Isabel Grilo, 2005.
"Latent and actual entrepreneurship in Europe and the US: some recent developments ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2005-24, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
[Downloadable!]
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