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The Relationship between Entrepreneurship and Unemployment in Japan

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Author Info

  • André van Stel

    ()

  • Roy Thurik

    ()

  • Ingrid Verheul

    () (Erasmus University Rotterdam, and EIM, Zoetermeer)

  • Lendert Baljeu

    (Erasmus University Rotterdam)

Abstract

This paper examines the relationship between entrepreneurship (as measured by fluctuations in the business ownership rate) and unemployment in Japan for the period between 1972 and 2002. We find that, although Japan’s unemployment rate has been influenced by specific exogenous shocks, the effects of entrepreneurship on unemployment are not different when compared to other OECD countries. In the past, small firms in Japan benefited from the protective environment of the keiretsu structure. This secure environment no longer exists, and a new market environment conducive to new venture creation and growth has not yet been established. We argue that the Japanese government should actively stimulate an entrepreneurial culture.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-080/3.

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Length:
Date of creation: 11 Oct 2007
Date of revision: 14 Jul 2008
Handle: RePEc:dgr:uvatin:20070080

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Related research

Keywords: entrepreneurship; business ownership; unemployment; Japan;

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References

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  1. Joost van Acht & Joop Stam & Roy Thurik & Ingrid Verheul, 2004. "Business Ownership and Unemployment in Japan," Tinbergen Institute Discussion Papers 04-036/3, Tinbergen Institute.
  2. Corsetti, G. & Pesenti, P. & Roubini, N., 1998. "What Caused the Asian Currency and Financial Crisis?," Papers 343, Banca Italia - Servizio di Studi.
  3. Ingrid Verheul & Sander Wennekers & David Audretsch & Roy Thurik, 2001. "An Eclectic Theory of Entrepreneurship: Policies, Institutions and Culture," Tinbergen Institute Discussion Papers 01-030/3, Tinbergen Institute.
  4. Carree, M.A. & Thurik, A.R., 2006. "The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries," Research Paper ERS-2006-064-ORG, 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.
  5. Genda, Yuji & Kambayashi, Ryo, 2002. "Declining Self-Employment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 16(1), pages 73-91, March.
  6. Urata, Shujiro & Kawai, Hiroki, 2002. " Technological Progress by Small and Medium Enterprises in Japan," Small Business Economics, Springer, vol. 18(1-3), pages 53-67, Feb.- May.
  7. A. Roy Thurik & Martin A. Carree & Andre van Stel & David B. Audretsch, 2007. "Does Self-Employment reduce Unemployment?," Jena Economic Research Papers 2007-089, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  8. Roy Thurik & Ingrid Verheul & Martin Carree, 2004. "Allocation and productivity of time in new ventures of female and male entrepreneurs," Scales Research Reports N200411, EIM Business and Policy Research.
  9. Aoki, Masahiko, 1990. "Toward an Economic Model of the Japanese Firm," Journal of Economic Literature, American Economic Association, vol. 28(1), pages 1-27, March.
  10. Kato, Takao, 2001. "The End of Lifetime Employment in Japan?: Evidence from National Surveys and Field Research," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 489-514, December.
  11. Abe, Masahiro & Ohta, Souichi, 2001. "Fluctuations in Unemployment and Industry Labor Markets," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 437-464, December.
  12. Michael Fritsch & Pamela Mueller, 2004. "The Effects of New Business Formation on Regional Development over Time," Papers on Entrepreneurship, Growth and Public Policy 2004-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  13. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor and Francis Journals, vol. 38(8), pages 961-975.
  14. D.B. Audretsch & P. Houweling & A.R. Thurik, 1998. "Industry Evolution: Diversity, Selection and the Role of Learning," Tinbergen Institute Discussion Papers 98-014/3, Tinbergen Institute.
  15. David Audretsch & Roy Thurik, 1997. "Sources of Growth," Tinbergen Institute Discussion Papers 97-109/3, Tinbergen Institute.
  16. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
  17. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
  18. Isobel van der Kuip & Ingrid Verheul, 2003. "Early Development of Entrepreneurial Qualities: the Role of Initial Education," Scales Research Reports N200311, EIM Business and Policy Research.
  19. Parker,Simon C., 2004. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521828130.
  20. Andre van Stel, . "COMPENDIA: Harmonizing business ownership data across countries and over time," Papers on Entrepreneurship, Growth and Public Policy 2005-05, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  21. Kawai, Hiroki & Urata, Shujiro, 2002. " Entry of Small and Medium Enterprises and Economic Dynamism in Japan," Small Business Economics, Springer, vol. 18(1-3), pages 41-51, Feb.- May.
  22. Cowling, Keith & Tomlinson, Philip R., 2002. "Re-Visiting The Roots Of Japan'S Structural Decline:The Role Of The Japanese Corporation," The Warwick Economics Research Paper Series (TWERPS) 624, University of Warwick, Department of Economics.
  23. Daly, George G., 1998. "Entrepreneurship and business culture in Japan and the U.S.1," Japan and the World Economy, Elsevier, vol. 10(4), pages 487-494, October.
  24. Carree, Martin A. & Thurik, A. Roy, 2003. "The impact of entrepreneurship on economic growth," Open Access publications from Maastricht University urn:nbn:nl:ui:27-3884, Maastricht University.
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Citations

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Cited by:
  1. Antonio Golpe & Andre van Stel, 2007. "Self-Employment and Unemployment in Spanish Regions in the Period 1979-2001," Jena Economic Research Papers 2007-021, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Joost van Acht & Joop Stam & Roy Thurik & Ingrid Verheul, 2004. "Business Ownership and Unemployment in Japan," Tinbergen Institute Discussion Papers 04-036/3, Tinbergen Institute.
  3. Rui Baptista & Roy Thurik, 2004. "The Relationship between Entrepreneurship and Unemployment: is Portugal an Outlier?," Papers on Entrepreneurship, Growth and Public Policy 2004-40, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  4. Martin Koning & Marie-Estelle Binet & François Facchini, 2010. "Les déterminants de la dynamique entrepreneuriale dans les régions françaises (1994-2003)," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00467900, HAL.
  5. Verheul, Ingrid & Van Stel, André & Thurik , Roy & Urbano, David, 2006. "The Relationship between Business Ownership and Unemployment in Spain: A Matter of Quantity or Quality?/La relación entre el autoempleo y el desempleo en España: Una cuestión de cantidad o de calid," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 24, pages 435-457, Agosto.
  6. David Audretsch & Roy Thurik, 2004. "A Model of the Entrepreneurial Economy," Papers on Entrepreneurship, Growth and Public Policy 2004-12, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  7. Antonio García-Tabuenca & José Crespo-Espert & Juan Cuadrado-Roura, 2011. "Entrepreneurship, creative industries and regional dynamics in Spain," The Annals of Regional Science, Springer, vol. 47(3), pages 659-687, December.
  8. José Antonio Belso Martínez, 2004. "Tasa óptima de empresarialidad y desarrollo económico. Evidencias para el caso español," Estudios de Economia, University of Chile, Department of Economics, vol. 31(2 Year 20), pages 207-225, December.

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