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Is it a good policy to promote self-employment for job creation? Evidence from Spain

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  • Congregado, Emilio
  • Golpe, Antonio A.
  • Carmona, Mónica

Abstract

An often applied labour market policy to combat unemployment is to stimulate unemployed individuals to start their own businesses. Such policy may at least, temporarily lead to increases in self-employment, in particular, in the number of own-account workers. These policies may be called successful when the formerly unemployed individuals remain in employment for a longer period of time either as self-employed or as paid-employed worker and also when they become employers they contribute to reduce unemployment not only by creating their own jobs but also by hiring new employees. In this paper we investigate empirically the long-run relationship between the two components of self-employment over the business cycle and discuss its implications for entrepreneurship policy.

Suggested Citation

  • Congregado, Emilio & Golpe, Antonio A. & Carmona, Mónica, 2010. "Is it a good policy to promote self-employment for job creation? Evidence from Spain," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 828-842, November.
  • Handle: RePEc:eee:jpolmo:v:32:y::i:6:p:828-842
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    Cited by:

    1. Molina, Jose Alberto & Velilla, Jorge & Ortega, Raquel, 2015. "The decision to become an entrepreneur in Spain: The role of the household financial situation," MPRA Paper 68101, University Library of Munich, Germany.
    2. Porras, María Sylvina & Martín-Román, Ángel L., 2017. "Self-employment and Okun’s Law relationship: the Spanish case," GLO Discussion Paper Series 157, Global Labor Organization (GLO).
    3. repec:ces:ifodic:v:14:y:2016:i:3:p:19255698 is not listed on IDEAS
    4. Gustavo Morales-Alonso & Iciar Pablo-Lerchundi & Ana M. Vargas-Perez, 2016. "An Empirical Study on the Antecedents of Knowledge Intensive Entrepreneurship," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(05), pages 1-15, October.
    5. Ana Millán & José María Millán & Concepción Román, 2016. "The Role of Start-up Incentives on Entrepreneurship Dynamics in a Post-Crisis Era: Evidence from European Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(3), pages 29-35, October.
    6. Jolanda Hessels & José María Millán & Concepción Román, 2015. "The Importance of Being in Control of Business: Work Satisfaction of Employers, Own-account Workers and Employees," Tinbergen Institute Discussion Papers 15-047/VII, Tinbergen Institute.
    7. Molina, Jose Alberto & Velilla, Jorge & Ortega, Raquel, 2016. "Entrepreneurial activity in the OECD: Pooled and cross-country evidence," MPRA Paper 71592, University Library of Munich, Germany.
    8. Vera Rocha & Anabela Carneiro & Celeste Amorim Varum, 2013. "Entrepreneurship Dynamics: Entry Routes, Business-Owner's Persistence and Exit Modes," CEF.UP Working Papers 1310, Universidade do Porto, Faculdade de Economia do Porto.
    9. repec:gam:jsusta:v:9:y:2017:i:7:p:1159-:d:103489 is not listed on IDEAS
    10. Berrittella, Maria, 2012. "Modelling the labour market of minority ethnic groups," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 389-402.
    11. repec:cii:cepiei:2014-q2-138-2 is not listed on IDEAS
    12. repec:nea:journl:y:2017:i:33:p:12-27 is not listed on IDEAS
    13. Martin Carree & Emilio Congregado & Antonio Golpe & André van Stel, 2015. "Self-employment and job generation in metropolitan areas, 1969-2009," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 27(3-4), pages 181-201, April.
    14. Roxana Gutiérrez-Romero, 2012. "Determinants of Spanish Firms' Life Cycle and Job Creation: A Pseudo-Panel Approach," Working Papers wpdea1209, Department of Applied Economics at Universitat Autonoma of Barcelona.
    15. Millán, José María & Congregado, Emilio & Román, Concepción, 2014. "Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 83-106.
    16. Molina, Jose Alberto & Velilla, Jorge, 2016. "La innovación como determinante pare el emprendimiento
      [Innovation as determinant of entrepreneurship]
      ," MPRA Paper 71471, University Library of Munich, Germany.
    17. repec:kap:sbusec:v:49:y:2017:i:4:d:10.1007_s11187-017-9853-y is not listed on IDEAS
    18. Emilio Congregado & Vicente Esteve & Antonio A. Golpe, 2012. "Job Creation and the Self-employed Firm Size: evidence from Spain," Working Papers 1202, Department of Applied Economics II, Universidad de Valencia.
    19. Sebastian Șipoș-Gug, 2012. "Unemployment as a factor of entrepreneurial activity," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(46bis), pages 169-186, December.
    20. Moral-Arce, Ignacio & Martín-Román, Javier & Martín-Román, Ángel L., 2018. "Cessation of activity benefit of Spanish self-employed workers: a heterogeneous impact evaluation," MPRA Paper 85111, University Library of Munich, Germany.
    21. Román, Concepción & Congregado, Emilio & Millán, José María, 2013. "Start-up incentives: Entrepreneurship policy or active labour market programme?," Journal of Business Venturing, Elsevier, vol. 28(1), pages 151-175.
    22. Juan A. Sanchis Llopis & José María Millán & Rui Baptista & Andrew Burke & Simon C. Parker & Roy Thurik, 2015. "Good times, bad times: entrepreneurship and the business cycle," Working Papers 1503, Department of Applied Economics II, Universidad de Valencia.
    23. repec:prg:jnlcbr:v:2017:y:2017:i:2:id:176:p:5-17 is not listed on IDEAS

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