IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v34y2022i8p1083-1108.html

Relationship between unemployment and new business registrations at the local level: the case of Poland

Author

Listed:
  • Małgorzata Wosiek
  • Adam Czudec
  • Ryszard Kata

Abstract

This article investigates the impact of local unemployment rate on new business registrations in different branches of service sector in Poland between 2003 and 2018. This relationship was verified using panel data methods (fixed effect Driscoll-Kraay estimators and panel VAR estimators). Additionally, the research approach involves considering local determinants which impact the relationship between unemployment and the entrepreneurship dynamic. The research results indicate a positive relationship between rising unemployment and the increase in the number of new operational and knowledge-based business-oriented service businesses in Poland between 2003 and 2018. Service sector, thus, is exposed to a relatively large presence of necessity entrepreneurship. Moreover, the study reveals the intra-regional territorial variation in terms of unemployment push effect with lower elasticity of the gross entry rate against unemployment in cities with poviat rights (where there are more incentives for entrepreneurial activity).

Suggested Citation

  • Małgorzata Wosiek & Adam Czudec & Ryszard Kata, 2022. "Relationship between unemployment and new business registrations at the local level: the case of Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 34(8), pages 1083-1108, November.
    • Handle: RePEc:taf:pocoec:v:34:y:2022:i:8:p:1083-1108
    DOI: 10.1080/14631377.2021.1915072
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14631377.2021.1915072
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631377.2021.1915072?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Stanislaw Cichocki, 2012. "Self-employment and the business cycle: evidence from Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 24(2), pages 219-239, January.
    2. Thurik, A. Roy & Carree, Martin A. & van Stel, André & Audretsch, David B., 2008. "Does self-employment reduce unemployment?," Journal of Business Venturing, Elsevier, vol. 23(6), pages 673-686, November.
    3. Per Davidsson, 2004. "Researching Entrepreneurship," International Studies in Entrepreneurship, Springer, number 978-0-387-23054-2, December.
    4. Joanna Tyrowicz & Joanna Nestorowicz, 2010. "Cynicism Starts Young: Age and Entrepreneurship over Transition," Working Papers 2010-02, Faculty of Economic Sciences, University of Warsaw.
    5. Pfeiffer, Friedhelm & Reize, Frank, 2000. "Business start-ups by the unemployed -- an econometric analysis based on firm data," Labour Economics, Elsevier, vol. 7(5), pages 629-663, September.
    6. Peter Zwan & Roy Thurik & Ingrid Verheul & Jolanda Hessels, 2016. "Factors influencing the entrepreneurial engagement of opportunity and necessity entrepreneurs," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 273-295, December.
    7. Heather M. Stephens & Mark D. Partridge & Alessandra Faggian, 2013. "Innovation, Entrepreneurship And Economic Growth In Lagging Regions," Journal of Regional Science, Wiley Blackwell, vol. 53(5), pages 778-812, December.
    8. Srhoj Stjepan & Zilic Ivan, 2021. "“Fine...I’ll do it myself”: Lessons from self-employment grants in a long recession period," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-32, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Małgorzata Wosiek, 2023. "Unemployment and Enterprise Births in European Countries: A Sectoral Approach," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    2. Ryszard Kata & Małgorzata Wosiek & Agnieszka Brelik, 2025. "Scale and Determinants of Non-Agricultural Business Activity Among Farmers in Poland," Sustainability, MDPI, vol. 17(15), pages 1-19, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Malgorzata Wosiek, 2021. "Unemployment and new firm formation: evidence from Polish industries at the regional level," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(4), pages 765-782, December.
    2. Marco Caliendo & Alexander S. Kritikos & Claudia Stier, 2023. "The influence of start-up motivation on entrepreneurial performance," Small Business Economics, Springer, vol. 61(3), pages 869-889, October.
    3. Andrew T. Young & Matthew J. Higgins & Donald J. Lacombe & Briana Sell, 2014. "The Direct and Indirect Effects of Small Business Administration Lending on Growth: Evidence from U.S. County-Level Data," NBER Working Papers 20543, National Bureau of Economic Research, Inc.
    4. Monika Mühlböck & Julia-Rita Warmuth & Marian Holienka & Bernhard Kittel, 2018. "Desperate entrepreneurs: no opportunities, no skills," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 975-997, December.
    5. Matthew J. Higgins & Donald J. Lacombe & Briana S. Stenard & Andrew T. Young, 2021. "Evaluating the effects of Small Business Administration lending on growth," Small Business Economics, Springer, vol. 57(1), pages 23-45, June.
    6. Katharina Pijnenburg, 2013. "Self-Employment and Economic Performance: A Geographically Weighted Regression Approach for European Regions," Discussion Papers of DIW Berlin 1272, DIW Berlin, German Institute for Economic Research.
    7. Frank M. Fossen & Trevor McLemore & Alina Sorgner, 2024. "Artificial Intelligence and Entrepreneurship," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 20(8), pages 781-904, December.
    8. Roberto PATUELLI & Enrico SANTARELLI & Annie TUBADJI, 2020. "Entrepreneurial intention among high-school students: the importance of parents, peers and neighbors," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 225-251, June.
    9. 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.
    10. Göggel Kathrin & Gräb Johannes & Pfeiffer Friedhelm, 2007. "Selbständigkeit in Europa 1991–2003: Empirische Evidenz mit Länderdaten / Self-Employment in 15 European Countries 1991–2003," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 227(2), pages 153-167, April.
    11. Jacqueline Chattopadhyay, 2018. "State Health Insurance Regulation and Self-Employment Rates After the Great Recession: The Role of Guaranteed Issue Mandates," Economic Development Quarterly, , vol. 32(1), pages 78-92, February.
    12. Maximo Camacho & Emilio Congregado & Ana Rodriguez-Santiago, 2024. "An inquiry into the drivers of an entrepreneurial economy: A Bayesian clustering approach," Journal of Evolutionary Economics, Springer, vol. 34(4), pages 991-1012, December.
    13. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    14. Nakil Sung & Jaekyung Kim, 2020. "Entry and exit of small self-employed businesses in Korea’s service industries," Small Business Economics, Springer, vol. 54(1), pages 303-322, January.
    15. Ratan J. S. Dheer & Len J. Treviño, 2022. "Explaining the rate of opportunity compared to necessity entrepreneurship in a cross-cultural context: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 29-55, March.
    16. Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant & Mathilde Aubry, 2018. "Entrepreneurship, economic development, and institutional environment: evidence from OECD countries," Journal of International Entrepreneurship, Springer, vol. 16(4), pages 504-546, December.
    17. Glocker, Daniela & Steiner, Viktor, 2007. "Self-Employment: A Way to End Unemployment? Empirical Evidence from German Pseudo-Panel Data," IZA Discussion Papers 2561, Institute of Labor Economics (IZA).
    18. Knut Røed & Jens Fredrik Skogstrøm, 2014. "Unemployment Insurance and Entrepreneurship," LABOUR, CEIS, vol. 28(4), pages 430-448, December.
    19. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    20. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:pocoec:v:34:y:2022:i:8:p:1083-1108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.