This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Does Self-Employment Reduce Unemployment? Author info | Abstract | Publisher info | Download info | Related research | Statistics David B. Audretsch ()
Roy Thurik ()
Andre van Stel ()
M.A. Carree
Additional information is available for the following
registered author(s):
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 unemploy-ment and self-employment, i.e. "refugee" and "entrepreneurial" effects. We also find that the "entrepreneu-rial" effects are considerably stronger than the "refugee" effects.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy in its series Discussion Papers on Entrepreneurship, Growth and Public Policy with number
2005-07.
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Length: 17 pages
Date of creation: May 2006Date of revision:
Handle: RePEc:esi:egpdis:2005-07Contact details of provider: Postal: Kahlaische Strasse 10, D-07745 Jena Phone: +49-3641-68 65 Fax: +49-3641-68 69 90 Web page: http://www.econ.mpg.de/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Lydia Nobis).
Keywords: entrepreneurship Gibrat's Law self-employment unemployment Other versions of this item:
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
2007-089, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek.
[Downloadable!] Audretsch, David B & Carree, Martin A & Thurik, A R Roy & van Stel, A J, 2005.
"Does Self-Employment Reduce Unemployment? ,"
CEPR Discussion Papers
5057, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) 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!] 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 :
References listed on IDEAS 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.: Adriaan J. van Stel & David J. Storey, 2004.
"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.
[Downloadable!]
Other versions: Shane, Scott & Kolvereid, Lars & Westhead, Paul, 1991.
"An exploratory examination of the reasons leading to new firm formation across country and gender ,"
Journal of Business Venturing ,
Elsevier, vol. 6(6), pages 431-446, November.
[Downloadable!] (restricted)
Nickell, Stephen J, 1996.
"Competition and Corporate Performance ,"
Journal of Political Economy ,
University of Chicago Press, vol. 104(4), pages 724-46, August.
[Downloadable!] (restricted)
Other versions: Audretsch, David B, et al, 2002.
"Impeded Industrial Restructuring: The Growth Penalty ,"
Kyklos ,
Blackwell Publishing, vol. 55(1), pages 81-97.
Other versions: David G. Blanchflower, 2000.
"Self-Employment in OECD Countries ,"
NBER Working Papers
7486, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Rui Baptista & Roy Thurik, 2004.
"The Relationship between Entrepreneurship and Unemployment: is Portugal an Outlier? ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2004-40, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
[Downloadable!]
David Audretsch & Michael Fritsch, 1994.
"The Geography of Firm Births in Germany ,"
Regional Studies ,
Taylor and Francis Journals, vol. 28(4), pages 359-365, July.
[Downloadable!] (restricted)
Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989.
"The Growth and Failure of U.S. Manufacturing Plants ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 104(4), pages 671-98, November.
[Downloadable!] (restricted)
Other versions: Nickell, Stephen & Nicolitsas, Daphne & Dryden, Neil, 1997.
"What makes firms perform well? ,"
European Economic Review ,
Elsevier, vol. 41(3-5), pages 783-796, April.
[Downloadable!] (restricted)
Other versions: 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: Sims, Christopher A, 1980.
"Macroeconomics and Reality ,"
Econometrica ,
Econometric Society, vol. 48(1), pages 1-48, January.
[Downloadable!] (restricted)
Isabel Grilo & Jesus-Maria Irigoyen, 2006.
"Entrepreneurship in the EU: To Wish and not to be ,"
Small Business Economics ,
Springer, vol. 26(4), pages 305-318, 05.
[Downloadable!] (restricted)
Andre van Stel, .
"COMPENDIA: Harmonizing business ownership data across countries and over time ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2005-05, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
[Downloadable!]
Other versions: David B. Audretsch & Max Keilbach, 2004.
"Entrepreneurship Capital and Economic Performance ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2004-01, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
[Downloadable!]
Other versions:
Audretsch, David B. & Keilbach, Max, 2002.
"Entrepreneurship Capital and Economic Performance ,"
ZEW Discussion Papers
02-76, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!] Audretsch, David B & Keilbach, Max, 2003.
"Entrepreneurship Capital and Economic Performance ,"
CEPR Discussion Papers
3678, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) David Audretsch & Max Keilbach, 2004.
"Entrepreneurship Capital and Economic Performance ,"
Regional Studies ,
Taylor and Francis Journals, vol. 38(8), pages 949-959, January.
[Downloadable!] (restricted) Gioacchino Garofoli, 1994.
"New Firm Formation and Regional Development: The Italian Case ,"
Regional Studies ,
Taylor and Francis Journals, vol. 28(4), pages 381-393, July.
[Downloadable!] (restricted)
Michael Fritsch & Pamela Mueller, 2004.
"The Effects of New Business Formation on Regional Development over Time ,"
Discussion Papers on Entrepreneurship, Growth and Public Policy
2004-36, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy.
[Downloadable!]
André Stel & Martin Carree & Roy Thurik, 2005.
"The Effect of Entrepreneurial Activity on National Economic Growth ,"
Small Business Economics ,
Springer, vol. 24(3), pages 311-321, 02.
[Downloadable!] (restricted)
Other versions: 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.
[Downloadable!]
John Sutton, 1997.
"Gibrat's Legacy ,"
Journal of Economic Literature ,
American Economic Association, vol. 35(1), pages 40-59, March.
[Downloadable!] (restricted)
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, January.
[Downloadable!] (restricted)
Evans, David S, 1987.
"Tests of Alternative Theories of Firm Growth ,"
Journal of Political Economy ,
University of Chicago Press, vol. 95(4), pages 657-74, August.
[Downloadable!] (restricted)
Other versions: David B. Audretsch & A. Roy Thurik, 2000.
"Capitalism and democracy in the 21st Century: from the managed to the entrepreneurial economy ,"
Journal of Evolutionary Economics ,
Springer, vol. 10(1), pages 17-34.
[Downloadable!] (restricted)
Evans, David & Jovanovic, Boyan, 1987.
"Entrepreneurial Choice and Liquidity Constraints ,"
Working Papers
87-31, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!]
Blau, David M, 1987.
"A Time-Series Analysis of Self-employment in the United State ,"
Journal of Political Economy ,
University of Chicago Press, vol. 95(3), pages 445-67, June.
[Downloadable!] (restricted)
Rees, Hedley & Shah, Anup, 1986.
"An Empirical Analysis of Self-employment in the U.K ,"
Journal of Applied Econometrics ,
John Wiley & Sons, Ltd., vol. 1(1), pages 95-108, January.
[Downloadable!] (restricted)
Johansson, Edvard, 2000.
" Self-Employment and Liquidity Constraints: Evidence from Finland ,"
Scandinavian Journal of Economics ,
Blackwell Publishing, vol. 102(1), pages 123-34, March.
[Downloadable!] (restricted)
Pfeiffer, Friedhelm & Reize, Frank, 2000.
"Business start-ups by the unemployed -- an econometric analysis based on firm data ,"
Labour Economics ,
Elsevier, vol. 7(5), pages 629-663, September.
[Downloadable!] (restricted)
Granger, C W J, 1969.
"Investigating Causal Relations by Econometric Models and Cross-Spectral Methods ,"
Econometrica ,
Econometric Society, vol. 37(3), pages 424-38, July.
[Downloadable!] (restricted)
Yu, Tony Fu-Lai, 1998.
"Adaptive entrepreneurship and the economic development of Hong Kong ,"
World Development ,
Elsevier, vol. 26(5), pages 897-911, May.
[Downloadable!] (restricted)
Peter E. Hart, Nicholas Oulton, 1999.
"Gibrat, Galton and Job Generation ,"
International Journal of the Economics of Business ,
Taylor and Francis Journals, vol. 6(2), pages 149-164, July.
[Downloadable!] (restricted)
Wennekers, Sander & Thurik, Roy, 1999.
" Linking Entrepreneurship and Economic Growth ,"
Small Business Economics ,
Springer, vol. 13(1), pages 27-55, August.
[Downloadable!] (restricted)
Hall, Bronwyn H, 1987.
"The Relationship between Firm Size and Firm Growth in the U.S. Manufacturing Sector ,"
Journal of Industrial Economics ,
Blackwell Publishing, vol. 35(4), pages 583-606, June.
[Downloadable!] (restricted)
Paul Reynolds & David Storey & Paul Westhead, 1994.
"Cross-national Comparisons of the Variation in New Firm Formation Rates ,"
Regional Studies ,
Taylor and Francis Journals, vol. 28(4), pages 443-456, July.
[Downloadable!] (restricted)
Erik Hurst & Annamaria Lusardi, 2004.
"Liquidity Constraints, Household Wealth, and Entrepreneurship ,"
Journal of Political Economy ,
University of Chicago Press, vol. 112(2), pages 319-347, April.
[Downloadable!] (restricted)
Beesley, M E & Hamilton, R T, 1984.
"Small Firms' Seedbed Role and the Concept of Turbulence ,"
Journal of Industrial Economics ,
Blackwell Publishing, vol. 33(2), pages 217-31, December.
[Downloadable!] (restricted)
André van Stel & Roy Thurik & Sander Wennekers & Martin Carree, 2007.
"The relationship between economic development and business ownership revisited ,"
Scales Research Reports
H200705, EIM Business and Policy Research.
[Downloadable!]
Geroski, P. A., 1995.
"What do we know about entry? ,"
International Journal of Industrial Organization ,
Elsevier, vol. 13(4), pages 421-440, December.
[Downloadable!] (restricted)
Highfield, Richard & Smiley, Robert, 1987.
"New business starts and economic activity : An empirical investigation ,"
International Journal of Industrial Organization ,
Elsevier, vol. 5(1), pages 51-66, March.
[Downloadable!] (restricted)
David Audretsch & Roy Thurik, 1997.
"Sources of Growth ,"
Tinbergen Institute Discussion Papers
97-109/3, Tinbergen Institute.
[Downloadable!]
Full
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.)
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.
[Downloadable!]
Pernilla Andersson & Eskil Wadensjö, 2006.
"Employees Who Become Self-Employed: Do Labour Income and Wages Have an Impact? ,"
IZA Discussion Papers
1971, Institute for the Study of Labor (IZA).
[Downloadable!]
Lorraine Uhlaner & Roy Thurik, 2005.
"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.
[Downloadable!]
Other versions:
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.
[Downloadable!] Lorraine Uhlaner & Roy Thurik, 2007.
"Postmaterialism influencing total entrepreneurial activity across nations ,"
Journal of Evolutionary Economics ,
Springer, vol. 17(2), pages 161-185, April.
[Downloadable!] (restricted) 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.
[Downloadable!]
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: 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, Thueringer Universitaets- und Landesbibliothek.
[Downloadable!]
Sindy A. González & Héctor J. Villarreal, 2006.
"More Pushed than Pulled: Self-employment in rural Mexico ten years after NAFTA ,"
Working Papers
20063, Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey, revised Nov 2006.
[Downloadable!]
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.
[Downloadable!]
Daniela Glocker & Viktor Steiner, 2007.
"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.
[Downloadable!]
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!]
Other versions:
Access and
download statistics Did you know? All RePEc services are meant to be be free forever, as they are all run by volunteers.
This page was last updated on 2008-7-8.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .