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The relationship between self-employment and unemployment in the long-run

Author

Listed:
  • George Saridakis
  • Miguel Angel Mendoza
  • Rebeca I. Muñoz Torres
  • Jane Glover

Abstract

Purpose - – Although a lot of research has been done on the link between self-employment and unemployment, often focusing on the short-run of the relationship, the long-run association between the two variables has not received adequate attention. The paper aims to discuss these issues. Design/methodology/approach - – In this paper the authors examine the long-run relationship between self-employment and unemployment using panel cointegration methods allowing for structural breaks and covering a wide range of European OECD countries using the COMPENDIA data set over the period 1990-2011. Findings - – The findings indicate that a long-run relationship between self-employment and unemployment exist in the panel, but the cointegrating coefficients are unstable. Originality/value - – The estimates finds positive and statistically significant long-run association between self-employment and unemployment exists for more than 50 per cent of the countries included in the sample after the break. For the rest of the countries the authors find either negative or statistically insignificant association.

Suggested Citation

  • George Saridakis & Miguel Angel Mendoza & Rebeca I. Muñoz Torres & Jane Glover, 2016. "The relationship between self-employment and unemployment in the long-run," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(3), pages 358-379, August.
    • Handle: RePEc:eme:jespps:v:43:y:2016:i:3:p:358-379
    DOI: 10.1108/JES-11-2013-0169
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    Citations

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    Cited by:

    1. Saridakis, George & Georgellis, Yannis & Muñoz Torres, Rebeca I. & Mohammed, Anne-Marie & Blackburn, Robert, 2021. "From subsistence farming to agribusiness and nonfarm entrepreneurship: Does it improve economic conditions and well-being?," Journal of Business Research, Elsevier, vol. 136(C), pages 567-579.
    2. Marina De Angelis & Marcella Corsi & Daniele Frigeri, 2017. "The determinants of entrepreneurship for migrants in Italy. Do Italian migrants become entrepreneurs by “opportunity” or through “necessity”?," Working Papers CEB 17-031, ULB -- Universite Libre de Bruxelles.

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