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Does Self-Employment reduce Unemployment? Author info | Abstract | Publisher info | Download info | Related research | Statistics A. Roy Thurik () (Erasmus University Rotterdam; EIM Business and Policy Research, Zoetermeer; and Max Planck Institute of Economics)
Martin A. Carree (University of Maastricht)
Andre van Stel (EIM Business and Policy Research; Cranfield School of Management; and Max Planck Institute of Economics)
David B. Audretsch (Max Planck Institute of Economics; and Indiana University, USA)
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This paper investigates the dynamic relationship between self-employment and unemployment rates. On the one hand, high unemployment rates may lead to start-up activity of self-employed individuals (the "refugee" effect). On the other hand, higher rates of self-employment may indicate increased entrepreneurial activity reducing unemployment in subsequent periods (the "entrepreneurial" effect). This paper introduces a new two-equation vector autoregression model capable of reconciling these ambiguities and estimates it for data from 23 OECD countries between 1974 and 2002. The empirical results confirm the existence of two distinct relationships between unemployment and self-employment: the "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 Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek in its series Jena Economic Research Papers with number
2007-089.
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Date of creation: 12 Nov 2007Date of revision:
Handle: RePEc:jrp:jrpwrp:2007-089Contact details of provider: Web page: http://www.jenecon.de
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Keywords: entrepreneurship 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!] 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!] 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: J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports :
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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.)
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2007-021, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek.
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Other versions: André van Stel & Roy Thurik & Ingrid Verheul & Lendert Baljeu, 2007.
"The Relationship between Entrepreneurship and Unemployment in Japan ,"
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07-080/3, Tinbergen Institute, revised 14 Jul 2008.
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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 ,"
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Journal of Evolutionary Economics ,
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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.
[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.
[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.
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"More Pushed than Pulled: Self-employment in rural Mexico ten years after NAFTA ,"
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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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