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Entrepreneurship and unemployment: A nonlinear bidirectional causality?

  • Faria, João Ricardo
  • Cuestas, Juan Carlos
  • Mourelle, Estefanía

This paper tests the view that the relation between unemployment and entrepreneurship is dynamic and possibly nonlinear. It performs Granger-causality tests and STAR-EXT estimation to assess the causality direction and the nonlinear nature of the relation for a set of OECD countries. The results reveal a bidirectional and nonlinear relation between business creation and changes in unemployment.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 27 (2010)
Issue (Month): 5 (September)
Pages: 1282-1291

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Handle: RePEc:eee:ecmode:v:27:y:2010:i:5:p:1282-1291
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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