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The Contribution of Business Ownership in Bringing Down Unemployment in Japan

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  • Andre van Stel
  • Lendert Baljeu
  • Roy Thurik

    ()

  • Ingrid Verheul

Abstract

The relationship between entrepreneurship, measured by fluctuations in the business ownership rate, and unemployment in Japan is examined for the period 1972-2002. We conclude that, although Japan's unemployment rate has been influenced by different exogenous shocks as compared to other OECD countries, the effects of entrepreneurship on unemployment are not distinct. 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 is not yet established. We argue that the Japanese government should actively stimulate an entrepreneurial culture.

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Bibliographic Info

Paper provided by Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group in its series Papers on Entrepreneurship, Growth and Public Policy with number 2006-05.

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Length: 18 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:esi:egpdis:2006-05

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Keywords: entrepreneurship; business ownership; unemployment; Japan;

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References

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  1. 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.
  2. André van Stel, 2004. "COMPENDIA: Harmonizing business ownership data across countries and over time," Scales Research Reports N200413, EIM Business and Policy Research.
  3. Corsetti, G. & Pesenti, P. & Roubini, N., 1998. "What Caused the Asian Currency and Financial Crisis?," Papers 343, Banca Italia - Servizio di Studi.
  4. Andr� 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.
  5. Ohkusa, Yasushi, 2004. "Programme evaluation of unemployment benefits in Japan: An average treatment effect approach," Japan and the World Economy, Elsevier, vol. 16(1), pages 95-111, January.
  6. 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.
  7. 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.
  8. M.A. Carree & A.R. Thurik, 2008. "The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries," Small Business Economics, Springer, vol. 30(1), pages 101-110, January.
  9. 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.
  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. 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.
  12. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
  13. 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.
  14. Joost van Acht & Joop Stam & Roy Thurik & Ingrid Verheul, 2004. "Business Ownership and Unemployment in Japan," Papers on Entrepreneurship, Growth and Public Policy 2004-09, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  15. 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.
  16. Roy Thurik & Sander Wennekers & Ingrid Verheul & David Audretsch, 2001. "An eclectic theory of entrepreneurship: policies, institutions and culture," Scales Research Reports H200012, EIM Business and Policy Research.
  17. 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.
  18. 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.
  19. Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521030632, April.
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Cited by:
  1. Martin Carree & Andr� 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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