English, Article, Journal or magazine article edition: Does Self-Employment reduce Unemployment? A. Roy Thurik; Martin A. Carree; David B. Audretsch; ...

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Bookmark: http://trove.nla.gov.au/version/544
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Does Self-Employment Reduce Unemployment?
Author
  • A. Roy Thurik
  • Martin A. Carree
  • David B. Audretsch
  • Andre van Stel
Physical Description
  • preprint
Notes
  • This paper investigates the dynamic relationship between self-employment and unemployment rates. On the one hand, high unemployment rates may lead to start-up activity of self-employed individuals (the "refugee" effect). On the other hand, higher rates of self-employment may indicate increased entrepreneurial activity reducing unemployment in subsequent periods (the "entrepreneurial" effect). This paper introduces a new two-equation vector autoregression model capable of reconciling these ambiguities and estimates it for data from 23 OECD countries between 1974 and 2002. The empirical results confirm the existence of two distinct relationships between unemployment and self-employment: the "refugee" and "entrepreneurial" effects. We also find that the "entrepreneurial" effects are considerably stronger than the "refugee" effects.
  • RePEc:jrp:jrpwrp:2007-089
  • This paper investigates the dynamic interrelationship between self-employment and unemployment rates. On the one hand, unemployment rates may stimulate start-up activity of self-employed. On the other hand, higher rates of self-employment may indicate increased entrepreneurial activity reducing unemployment in subsequent periods. These two effects have resulted in considerable ambiguities about the interrelationship between unemployment and entrepreneurial activity. This paper introduces a two-equation vector autoregression model capable of reconciling these ambiguities and tests it for data of 23 OECD countries over the period 1974-2002. The empirical results confirm the two distinct relationships between unemploy-ment and self-employment, i.e. "refugee" and "entrepreneurial" effects. We also find that the "entrepreneu-rial" effects are considerably stronger than the "refugee" effects.
  • entrepreneurship, Gibrat's Law, self-employment, unemployment
  • RePEc:esi:egpdis:2005-07
Language
  • English
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