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Cultural hysteresis, entrepreneurship and economic crisisAn analysis of buffers to unemployment after economic shocks

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  • Annie Tubadji
  • Peter Nijkamp
  • Vassilis Angelis

Abstract

Entrepreneurship has been advocated as one of the major solutions for coping with (youth) unemployment in Europe during the recent economic downturn. Entrepreneurial activity is generally co-determined by economic and cultural factors. However, cultural change normally requires a much longer time to take place than economic changes do. This may prompt a so-called cultural hysteresis effect in the efficiency of entrepreneurial incentives. To analyze these effects, data from the Global Entrepreneurship Monitor (2003–2010) are used. A Two-Stage Least Square instrumental variable and a logit model with difference-in-differences are employed. We find that the cultural hysteresis is less prominent among Mediterranean countries. Moreover, it is almost negligible in the response to incentives by female youth.

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  • Annie Tubadji & Peter Nijkamp & Vassilis Angelis, 2016. "Cultural hysteresis, entrepreneurship and economic crisisAn analysis of buffers to unemployment after economic shocks," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 103-136.
    • Handle: RePEc:oup:cjrecs:v:9:y:2016:i:1:p:103-136.
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    4. Annie Tubadji & Don J. Webber & Frédéric Boy, 2021. "Cultural and economic discrimination by the Great Leveller," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(S1), pages 198-216, November.
    5. Andrea Filippetti & Petros Gkotsis & Antonio Vezzani & Antonio Zinilli, 2020. "Are innovative regions more resilient? Evidence from Europe in 2008–2016," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 807-832, October.
    6. Raluca Ignat & Marius Constantin, 2020. "Multidimensional Facets of Entrepreneurial Resilience during the COVID-19 Crisis through the Lens of the Wealthiest Romanian Counties," Sustainability, MDPI, vol. 12(23), pages 1-29, December.
    7. Chan, Jin Hooi & Mohamad Hashim, Intan H. M. & Khoo, Suet Leng & Lean, Hooi Hooi & Piterou, Athina, 2020. "Entrepreneurial orientation of traditional and modern cultural organisations: cases in George Town UNESCO World Heritage Site," Greenwich Papers in Political Economy 29105, University of Greenwich, Greenwich Political Economy Research Centre.
    8. Xin Mai & Roger C. K. Chan, 2020. "Detecting the intellectual pathway of resilience thinking in urban and regional studies: A critical reflection on resilience literature," Growth and Change, Wiley Blackwell, vol. 51(3), pages 876-889, September.
    9. John Östh & Aura Reggiani & Peter Nijkamp, 2018. "Resilience and accessibility of Swedish and Dutch municipalities," Transportation, Springer, vol. 45(4), pages 1051-1073, July.
    10. Tubadji, Annie & Nijkamp, Peter & Santarelli, Enrico, 2017. "Shacklean Uncertainty and Cultural Embeddedness as Innovation Constraints in the UK," GLO Discussion Paper Series 111, Global Labor Organization (GLO).
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    12. Juan R. Cuadrado-Roura & Ron Martin & Andrés Rodríguez-Pose, 2016. "The economic crisis in Europe: urban and regional consequences," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 3-11.

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