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http://hdl.handle.net/10419/25654
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| Title: | | Does self-employment reduce unemployment?  |
| Authors: | | Thurik, A. Roy Carree, Martin A. van Stel, André J. Audretsch, David B. |
| Issue Date: | | 2007 |
| Series/Report no.: | | Jena economic research papers 2007,089 |
| Abstract: | | This paper investigates the dynamic relationship between self-employment and unem-ployment 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 es-timates it for data from 23 OECD countries between 1974 and 2002. The empirical re-sults confirm the existence of two distinct relationships between unemployment and self-employment: the refugee and entrepreneurial effects. We also find that the entrepre-neurial effects are considerably stronger than the refugee effects. |
| Subjects: | | entrepreneurship self-employment unemployment |
| JEL: | | J23 J64 L26 L53 M13 O11 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Jena Economic Research Papers, MPI für Ökonomik
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