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Does Unemployment Contribute to Self-employment and Productivity in Regions? A Causal Examination Adopting a Cross-Lagged Design

In: The Palgrave Handbook of Minority Entrepreneurship

Author

Listed:
  • Daniel Örtqvist

    (Luleå University of Technology)

  • Thomas Ejdemo

    (Luleå University of Technology)

Abstract

There are many suggested benefits of transitioning from unemployed to self-employed. Still, unemployed have been identified as a disadvantaged group to start and sustain new businesses. Alternative theoretical explanations have been suggested and empirical results that have been presented are ambiguous. Focusing on potential co-existence of alternative explanations, this chapter sets out to examine the causality between unemployment and outcomes in terms of self-employment and regional productivity. The results from this study suggests that regional levels of unemployment will be unrelated to future levels of self-employment and regional productivity. However, this study provides strong support that increased levels of self-employment and regional productivity reduces future regional unemployment.

Suggested Citation

  • Daniel Örtqvist & Thomas Ejdemo, 2021. "Does Unemployment Contribute to Self-employment and Productivity in Regions? A Causal Examination Adopting a Cross-Lagged Design," Springer Books, in: Thomas M. Cooney (ed.), The Palgrave Handbook of Minority Entrepreneurship, edition 1, pages 391-408, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-66603-3_18
    DOI: 10.1007/978-3-030-66603-3_18
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