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Entrepreneurship and Short-Term Labor Market Sustainable Functioning—The Case of Romania
Abstract
If contractual work (waged) is traditional employment, “the new work” is represented by entrepreneurship and self-employment and to a certain extent by various forms of “subsistence economy”. We develop an instrument to understand how new work shapes the short-term labor market's sustainable functioning. The dynamic interaction between labor market macro-aggregates related to employment status is treated in a systemic approach. We analyze the Granger Causality (GC) relations between contractual/dependent work, non-contractual/independent work and the work’s social protection. A total of 14 VAR models have been analyzed following the Toda and Yamamoto (J. Econ. 66: 225–250, 1995) procedure as detailed by Giles (Testing for granger causality. Econometrics beat: dave giles, 2011), using 2 datasets (1999Q1-2018Q1 and 2008Q1-2018Q1). The main conclusion is that only a sustainable entrepreneurship mechanism could make the Romanian labor market suitable for the actual challenges. A powerful call for a new type of entrepreneurial behavior becomes evident in the case of Romania.KeywordsSustainable entrepreneurshipWaged employmentSelf-employmentUnemploymentInnovation
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Motivation plays a crucial role on employees’ performance. Though organizations have an interest in keeping the employees motivated at work, they do not always have the complete picture on what indeed motivates an employee. Scholars agree that money (including employees’ wages) significantly affects employees’ performance and productivity, but they do not unanimously place it among the strongest determinants of employee motivation. The main purpose of this work was to explore the factors influencing the true motivation of employees to enhance their performance and productivity at work. This study employed a quantitative research design based on data collected during the severe period of the COVID-19 pandemic. There were 110 participants, of which 38 (34.5%) males 72 (65.5%) females working in different companies in Albania. The results showed a moderate level of satisfaction and motivation at work and a significant correlation between the motivation and success of the company. Additionally, the data indicated that most of the participants were satisfied with the financial allowances, but that they aspired to have higher wages and better workplace conditions. Therefore, higher salaries, extra bonuses and the promotion in their role at work or recognition and appreciation seem to be very important motivational factors for the employees. Finally, this study proposes recommendations for companies on how to implement different strategies to increase employees’ motivation and enhance the business effectiveness. This study analyses data collected during the global pandemic and would serve as reference for periods associated with dire financial difficulty.
Happiness and work satisfaction have been the focus of many studies in the last decade. The literature suggests three main dimensions of the quest for happiness ― pleasure, meaning, and engagement. While goal setting has been identified as a prominent process that may support happiness as well as work satisfaction, it has never been addressed as a dimension in the quest for happiness. This study addressed the literature gap, by presenting empirical evidence for the fourth dimension and its effect on work satisfaction. Based on 1077 respondents, Exploratory Factor Analysis (EFA) followed by Confirmatory Factor Analysis (CFA) were employed. Results confirm the existence of an independent fourth dimension, and its effect on job satisfaction and happiness. Although goal setting is a prominent construct to achieve happiness, especially in western culture, this is the first study that validates it as the fourth dimension in the search for happiness, followed by practical implications in the workforce.
Studies of whether unemployment leads to more or fewer firm births and whether firm births reduce unemployment have produced mixed, inconclusive, and even conflicting results. A group of studies have attempted to reconcile these findings by exploring the possibility that the assumed linear relationship may break down and become non-linear, as might be the case if the relationships were space-and time-variant. However, these studies have also produced inconclusive results. The current study extends the analysis in this small but growing literature from the usual single-and multi-country level to the sub-country level while paying particular attention to the role of spatial effects in the firm creation process. We do this by combining spatial exploratory data analysis and spatial econometrics based on panel data for 365 counties in the Mid-Atlantic region from 1999 to 2010. The results show that spatial effects play a crucial role in this process and that ignoring them substantially underestimates the long-run effects of unemployment on firm births. The results also reveal a robust and statistically significant inverted U-shaped relationship in which rising unemployment raises the firm birth rate up to a certain threshold. In addition, a U-shaped relationship where rising firm births lower unemployment for a period but subsequently increase it is observed. These non-linear results help explain some of the conflicting findings in the literature.
This research analyzes the main variables that determine immigration in Europe and includes aspects related to the economy, population, healthcare, and environmental sustainability. The empirical analysis consists of two sets of data: one made up of all EU member states (EU-28) and the other containing countries that form a part of the Eurozone (EU-19), using the Generalized Method of Moments. The sample covers the period between 2000 and 2014, and the data are analyzed separately and comparatively in the most relevant stages during that time (economic prosperity, crisis, and recovery). The most notable results indicate that the variables related to GDP and public debt largely serve to justify the level of immigration since the crisis (2008–2014), while the life expectancy and levels of pollution are determining factors in all three stages examined here. The study concludes that countries in the Eurozone are more sensitive to variation in the variables studied compared to all the EU member states and thus the impact of immigration among the EU-19 countries is more notable.
The topic of green innovation (GI) has increasingly attained organizational relevance due to its contribution to the satisfaction of environmental needs while concurrently enabling companies to differentiate themselves from their competitors, and hence attain sustainable competitive advantages. In this context, we conducted a detailed analysis of 618 papers on green innovation from the Web of Science (WoS) database for the 1971–2015 period. This paper develops a bibliometric analysis with the aim of assessing the key papers in the field and identifying the most substantive contributions to the literature. This study presents the following findings: (i) the chronological development of the discipline; (ii) the research trends and popular issues in this field; (iii) the antecedent variables acting as key drivers of GI in these studies; and (iv) the main outcomes of GI. Therefore, this paper provides the past, the present and the potential future of this specific topic and serves as an orientation and guide for researchers who are new to the topic of GI; it also enhances their knowledge concerning which journals, authors and articles they may consult while creating their theoretical framework or designing future research models.
This manuscript provides a novel approach to reputational management as a driver of entrepreneurial sustainability, using game theory to integrate three dimensions of reputation. First, if the entrepreneur perceives reputation as a risk source, the analysis is framed as a prisoner’s dilemma schema that is solved by protecting against reputational threats from entrepreneurial sustainability. Second, if the entrepreneur perceives reputation as a competitive advantage, the analysis is framed as an innovator’s dilemma that is solved by getting reputational opportunities from entrepreneurial sustainability. Third, if reputation is perceived as a strategic asset, the analysis is framed as a coordination game schema that results in the development of a reputational intelligence skill that has the potential to become crucial for success in entrepreneurial sustainability. Consequently, this manuscript provides an original multidisciplinary analysis of reputational management by relating well-known theoretical results from game theory to organizational realities.
In this paper we study labor market transitions among self-employment, gainful employment, and unemployment across the business cycle comparing the performance of migrants and natives and controlling for individual characteristics. The Markov chain specification we use is an appropriate representation for our employment transition setting. Based on 19 waves of individual panel data the state probabilities for immigrants and Germans are the highest for paid-employment. While for Germans the next higher state is self-employment, for immigrants it is unemployment. The transition probabilities are highest for staying in the current state for both immigrants and natives. Germans are three times more likely to transition to self-employment from unemployment than immigrants. Good or bad times in the economy, however, do not have a significantly differential effect on any of the transitions related to self-employment for immigrants. In contrast, the business cycle affects Germans’ self-employment probabilities. During the upswing, they leave unemployment to go into self-employment; they also leave self-employment to go back to paid-employment. Both immigrants and Germans use self-employment to transition in and out of the other employment states. They especially use it to escape unemployment and this is a relevant and applicable strategy.
The impact of unemployment on self-employment is rather an ambiguous issue in economics. According to refugee effect approach, there are two counter arguments: the theory of income choice argument suggests that increased unemployment may lead to increased self-employment activities whereas the counter argument defends the view that an increase in unemployment rates may decrease the endowments of human capital and entrepreneurial talent causing a rise in unemployment rates further. The empirical evidence on this issue seems to support both hypotheses. This research presents fresh and more comprehensive evidence on this issue from 28 OECD countries using the ARDL approach to co-integration technique over the period 1986-2013. The empirical results indicate that the first hypothesis holds in the case of Belgium, Canada, Sweden and the UK whereas the second hypothesis is valid in the case of Greece, Luxembourg and Portugal. The empirical results for the remaining OECD countries did not reveal any long-run relationship between the variables in question. The empirical results are also evaluated briefly for policy recommendations.
The global economic crisis has had an adverse effect on, and may continue to affect, the entrepreneurial sector all over the world. However, even in a recessionary period, there will always be some firms growing faster than others. It is therefore imperative to understand the variables and processes that make some firms grow faster or more resilient to crisis than others. In this paper, we focus on firm size and its contributions to growth. We examine whether growth rates of manufacturing and service industries are independent of firm size during the period of economic crisis. Based on a large sample of surviving firms in the manufacturing and hospitality industries, the results of two-step dynamic panel suggest that turnover growth is positively associated with companies’ size during the observed period of economic recession 2008–2013. In both industries, large and medium-sized firms exhibit higher growth than do small firms.
This paper brings to light an economic problem that frequently appears in practice: For the same variable, more alternative forecasts are proposed, yet the decision-making process requires the use of a single prediction. Therefore, a forecast assessment is necessary to select the best prediction. The aim of this research is to propose some strategies for improving the unemployment rate forecast in Romania by conducting a comparative accuracy analysis of unemployment rate forecasts based on two quantitative methods: Kalman filter and vector-auto-regressive (VAR) models. The first method considers the evolution of unemployment components, while the VAR model takes into account the interdependencies between the unemployment rate and the inflation rate. According to the Granger causality test, the inflation rate in the first difference is a cause of the unemployment rate in the first difference, these data sets being stationary. For the unemployment rate forecasts for 2010-2012 in Romania, the VAR models (in all variants of VAR simulations) determined more accurate predictions than Kalman filter based on two state space models for all accuracy measures. According to mean absolute scaled error, the dynamic-stochastic simulations used in predicting unemployment based on the VAR model are the most accurate. Another strategy for improving the initial forecasts based on the Kalman filter used the adjusted unemployment data transformed by the application of the Hodrick-Prescott filter. However, the use of VAR models rather than different variants of the Kalman filter methods remains the best strategy in improving the quality of the unemployment rate forecast in Romania. The explanation of these results is related to the fact that the interaction of unemployment with inflation provides useful information for predictions of the evolution of unemployment related to its components (i.e., natural unemployment and cyclical component).
his study investigates the causal relation between school education and economic growth in Romania, using annual time series data from 1985 to 2009. The econometric approach of this paper is based on the bivariate Vector Autoregression (VAR) model, Granger causality test and unit root test. The empirical results show evidence of unidirectional causality between school education and economic growth in Romania.
We construct a simple model incorporating various urban labour market phenomena obtaining in developing economies, and we give a diagrammatic formulation of the market equilibrium. Our initial formulation assumes an integrated labour market and allows for entrepreneurship, self-employment, and wage employment. We then introduce labour market segmentation. In equilibrium voluntary and involuntary self-employment, formal and informal wage employment, and formal and informal entrepreneurship may all coexist. We illustrate the model by an example calibrated on Latin American data, examining individual labour market transitions and implications of education/training and labour market policies.
Worldwide, there is an agreement on the importance of entrepreneurship for
economic and social development. All governments alert of
entrepreneurship as economic power, and implement policies to promote it.
Consequently, the relationship between entrepreneurship and unemployment
come to be a questioning topic for researcher for quite some time.
Therefore, extensive research has investigated this topic. Literature showed
an important role of entrepreneurship in job creation and unemployment
reduction. Higher rate of unemployment rate may motivate entrepreneurial
needs, stimulating more start-ups and business ownerships. Then again,
higher entrepreneurship may expedite self-employment in new businesses
and reduce unemployment. With an unemployment rate of 30% between
Saudi citizen youth, entrepreneurship should be evolved to act as an engine
of self-employment. All of these facts highlight the importance of
understanding the relationship and interaction between unemployment and
entrepreneurship. Hence, the main objective of this paper is to investigate
this interactional relationship, presenting Saudi Arabia as a case study. To
obtain this, the study aim to focus on unemployment as a problem has to be
solved, and whether this can be done passing through entrepreneurship. A
descriptive statistics analysis is proposed to explain the characteristics of the
model variable. A regression model is implied and estimated to test the
study hypothesis, for data of 31 selected countries during 2008-2010. This
selection was limited by the available official set of data, obtained from
Global Entrepreneurship Monitor (GEM). The study empirical result
validates the literature findings. However some results are as expected, the
study confirms that the relationship between unemployment and
entrepreneurship is ambiguous. In conclusion, the study identifies areas of
concern that further researcher can embark on. The need of entrepreneurial
intelligent and cultural environment is highlighted.
Informed by the sustainable development and entrepreneurship literatures we offer the following definition: Sustainable entrepreneurship is focused on the preservation of nature, life support, and community in the pursuit of perceived opportunities to bring into existence future products, processes, and services for gain, where gain is broadly construed to include economic and non-economic gains to individuals, the economy, and society. To illustrate the diversity of potential research avenues that will advance this field, we offer a research agenda derived from an economics, an institutional, and a psychology perspective. We suggest research questions exploring “what is to be sustained” and “what is to be developed” in sustainable entrepreneurship research.
The intellectual breakthrough contributed by the new growth theory was the recognition that investments in knowledge and human
capital endogenously generate economic growth through the spillover of knowledge. However, endogenous growth theory does not
explain how or why spillovers occur. This paper presents a model that shows how growth depends on knowledge accumulation and
its diffusion through both incumbents and entrepreneurial activities. We claim that entrepreneurs are one missing link in
converting knowledge into economically relevant knowledge. Implementing different regression techniques for the Organisation
for Economic Co-operation and Development (OECD) countries during 1981 to 2002 provides surprisingly robust evidence that
primarily entrepreneurs contributed to growth and that the importance of entrepreneurs increased in the 1990s. A Granger test
confirms that causality goes in the direction from entrepreneurs to growth. The results indicate that policies facilitating
entrepreneurship are an important tool to enhance knowledge diffusion and promote economic growth.
In this paper we suggest that the spillover of knowledge may not occur automatically as typically assumed in models of endogenous
growth. Rather, a mechanism is required to serve as a conduit for the spillover and commercialization of knowledge from the
source creating it, to the firms actually commercializing the new ideas. In this paper, entrepreneurship is identified as
one such mechanism facilitating the spillover of knowledge. Using a panel of entrepreneurship data from 18 countries, we provide
empirical evidence that, in addition to measures of Research & Development and human capital, entrepreneurial activity also
serves to promote economic growth.
KeywordsEntrepreneurship knowledge spillovers–Commercialization
Do individuals who are concerned by issues of sustainability also exhibit stronger entrepreneurial intentions? Given that existing imperfections in the market create numerous opportunities for entrepreneurship connected with sustainable development, adding individual sustainability orientation to models of entrepreneurial intention could increase their explanatory power. Based on survey data collected from engineering and business students and alumni of three universities, we provide evidence that entering sustainability orientation into the equation is actually meaningful. However, our findings suggest that the positive impact of sustainability orientation vanishes with business experience. Consequently, we suggest measures to nourish an evidently existing potential for sustainable entrepreneurship.
This paper presents a cyclical model for unemployment and entrepreneurship. The estimated periodicity of the cycles for the US, the UK, Spain and Ireland is between 5 and 10Â years, and the orders of integration are smaller (greater) than 1 if the underlying disturbances are autocorrelated (white noise), corresponding to dampen cycles (limit cycle).
This article discusses the strategies that sustainable entrepreneurs use to interact with their environment in the Dutch construction industry. The Dutch construction industry is under great pressure to move towards sustainability, and entrepreneurs are believed to be able to play a large role in this transition by introducing new products and new business practices. But how can entrepreneurs prosper in an environment that is not geared up towards such a change? And which strategies do they use to bend conditions in their favor? In this article we make use of the Market and System Failure Framework to analyze the pressures that entrepreneurs are confronted with when introducing sustainable innovations. We recognize that these pressures can be seen as bottlenecks, but that market and system failures can also create entrepreneurial opportunities. We interviewed 16 entrepreneurs in the Dutch construction industry to determine the influences they experienced from their environment and the strategies they use to deal with these. We conclude that we can distinguish between system building and following entrepreneurs, where the former aims to build a new system to challenge the old one, whereas the latter rather makes use of existing structures to build a business. We find that both strategies can be successful and that overall, the entrepreneurs confirm the belief that sustainability on people, planet and transparency aspects, can contribute very well to the long term profitability of the businesses the entrepreneurs are running. These in-depth insights into the influences from the context on the one hand, and the entrepreneurs’ strategic reactions on the other hand, contribute to our understanding of the interactions between entrepreneurs and the system context. This can help us to more effectively stimulate and support innovating entrepreneurs to contribute to the transition towards sustainability.
The linkages between the extent to which increasing returns to production exist within a spatial unit of observation and the tendency towards increased concentration of economic activity, measured in terms of the birth of new firms, is the focus of this paper. Based on 75 regions in west Germany, we find considerable evidence suggesting that birth rates are greater in regions exhibiting characteristics reflecting convexities in production. This provides support for the theory that the location of new economic activity tends to occur in the geographic space where such production convexities are the greatest.
An updated version will be published in the Journal of Business Venturing in 2008, 23(6).
More than a decade ago, Low and MacMillan identified three elements indispensable to an understanding of entrepreneurial success: process, context, and outcomes. Since their critique, three important advances include (a) a shift in theoretical emphasis from the characteristics of entrepreneurs as individuals to the consequences of their actions, (b) a deeper understanding of how entrepreneurs use knowledge, networks, and resources to construct firms, and (c) a more sophisticated taxonomy of environmental forces at different levels of analysis (population, community, and society) that affect entrepreneurship. Although our knowledge of entrepreneurial activities has increased dramatically, we still have much to learn about how process and context interact to shape the outcome of entrepreneurial efforts. From an evolutionary approach, process and context (strategy and environment) interact in a recursive continuous process, driving the fate of entrepreneurial efforts. Thus, integrating co...
In this study, we investigate the relationships among entrepreneurship, economic growth, and employment in Taiwan, by applying the vector autoregression (VAR) model. After estimating the VAR model, using Taiwan's quarterly macro data from 1987 to 2012, our estimated results confirm that entrepreneurship can be helpful to economic growth and employment, with 6 periods of lag, respectively. The boom of real GDP can bring the expansion of employment rate immediately and lag-1 period, but not the reverse. In addition, we also find the mutual interaction between the entrepreneurship and employment rate. Therefore, the government should build an environment that stimulates entrepreneurship.
In this paper we investigated the relationship between entrepreneurship rate and unemployment rate in developed and developing countries for a panel of 23 OECD countries and 7 developing countries. We use data over the period 1995-2007. Method in this paper is simultaneous equation model with two-equation. The results indicate that, Schumpeter effect for developed and developing countries is established as a definite (impact of entrepreneurship rate on unemployment rate), but refugee effect (impact of unemployment rate on entrepreneurship rate) is not clearly. The other difference in this article showed the relationship of unemployment rate on entrepreneurship rate (refugee effect) has a square, the first it has increased and then decreased.
This paper aims at investigating the heterogeneity of informal employment on the Turkish labour market. To circumvent the constraints imposed by the traditional parametric methods, finite mixture models are estimated in order to identify the optimal number of segments within the informal employment and their respective returns to individual characteristics. In particular, it sheds light on the potential voluntary nature of informal employment by comparing the estimated probabilities of segment membership with the theoretical probabilities that would result from a competitive labour market under the hypothesis of income maximization by workers. Results show that the classical self-employed versus informal wage-workers divide is not the best split of informal employment. Furthermore, the two estimated informal employment segments are both less desirable than formal employment. Thus, the hypothesis of labour-market segmentation, even after taking informal-sector heterogeneity into account, seems to hold, supporting the traditional dualistic view of informal employment in the Turkish context.
Euro area economies have lower total factor and labour productivity than the US. I argue that differences in entry cost contribute to this by affecting firms’ technology choice. Introducing technology choice into a standard heterogeneous-firm model, small differences in administrative entry cost can explain around one third of TFP differences. The productivity difference arises because entry costs reduce competition and the incentive to adopt more advanced technologies. Firm heterogeneity, technology choice and the competition channel all contribute to strengthening results compared to previous studies. The effects of entry costs are even larger when the labour market is not competitive.
Institutional and organizational variety is increasingly characterising advanced economic systems. While traditional economic theories have focussed almost exclusively on profit-maximizing (i.e. for-profit) enterprises and on publicly-owned organizations, the increasing relevance of non-profit organizations, and especially of social enterprises, requires scientists to reflect on a new comprehensive economic approach for explaining this organizational variety. The paper examines the main limitations of the orthodox and institutional theories and comes to assert the need for creating and testing a new theoretical framework, which considers the way in which diverse enterprises pursue their goals, the diverse motivations driving actors and organizations, and the different learning patterns and routines within organizations. The new framework of analysis proposed in the paper draws upon recent developments in the theories of the firm, institutional evolution, and motivational complexity to explain the presence of diverse types of organizations on a continuum ranging from purely for-profit and commercial forms to socially-oriented entrepreneurial ones.
This paper tests the view that the relation between unemployment and entrepreneurship is dynamic and possibly nonlinear. It performs Granger-causality tests and STAR-EXT estimation to assess the causality direction and the nonlinear nature of the relation for a set of OECD countries. The results reveal a bidirectional and nonlinear relation between business creation and changes in unemployment.
This paper shows how we can estimate VAR's formulated in levels and test general restrictions on the parameter matrices even if the processes may be integrated or cointegrated of an arbitrary order. We can apply a usual lag selection procedure to a possibly integrated or cointegrated VAR since the standard asymptotic theory is valid (as far as the order of integration of the process does not exceed the true lag length of the model). Having determined a lag length k, we then estimate a (k + dmax)th-order VAR where dmax is the maximal order of integration that we suspect might occur in the process. The coefficient matrices of the last dmax lagged vectors in the model are ignored (since these are regarded as zeros), and we can test linear or nonlinear restrictions on the first k coefficient matrices using the standard asymptotic theory.
There is an ongoing debate among researchers and policy makers, whether informal sector employment is a result of competitive market forces or labor market segmentation. More recently it has been argued that none of the two theories sufficiently explains informal employment, but that the informal sector shows a heterogenous structure. For some workers the informal sector is an attractive employment opportunity, whereas for others – rationed out of the formal sector – the informal sector is a strategy of last resort. To test the empirical relevance of this hypothesis we formulate an econometric model which allows for several unobserved segments within the informal sector and apply it to the urban labor market in Côte d'Ivoire.
The present paper examines the relationship between entrepreneurship, as measured by the variation in business ownership rates, and unemployment in Portugal in the period from 1972 to 2002. It concludes that Portugal has been a relative outlier in regard to the effects of entrepreneurship on unemployment when compared with the OECD average. Although the nature of entrepreneurship may be different in the Portuguese case, due to a high proportion of “micro-businesses” created for subsistence which have little impact on growth and employment, this factor does not seem to be the primary reason for the observed discrepancies. The differences between observed levels of unemployment for Portugal and those predicted by a model based on OECD data seem to be mostly associated with macroeconomic fluctuations associated with European business cycles and EU “cohesion” funding, as well as with adjustment costs to new technology adoption which lead to productivity slowdowns, thus increasing the time lag for the effect of entrepreneurship on employment beyond the OECD average.
The purpose of this paper is to explain why the likelihood of survival and post-entry growth rates vary systematically from industry to industry. In particular, the post-entry performance of new firms is linked to the underlying technological conditions in an industry. In industries where innovative activity, and especially the innovative activity of small firms, plays an important role, the likelihood of new entrants' surviving over a decade is lower than in industries where innovative activity is less important. At the same time, those entrants that are able to survive exhibit higher growth rates. In addition, the conditional likelihood of surviving an additional two years for entrants that have already survived the first few years is actually greater, and not lower, in highly innovative industries.The evidence therefore suggests that a highly innovative environment exerts a disparate effect on the post-entry performance of new entrants. Those new firms that are able to adjust and offer a viable product apparently experience higher rates of growth and a greater likelihood of survival. But overall, entrants and certainly new firms that are not able to adjust and produce a viable product are confronted by a lower likelihood of survival in highly innovative environments.
This is the new and totally revised edition of Ltkepohl's classic 1991 work. It provides a detailed introduction to the main steps of analyzing multiple time series, model specification, estimation, model checking, and for using the models for economic analysis and forecasting. The book now includes new chapters on cointegration analysis, structural vector autoregressions, cointegrated VARMA processes and multivariate ARCH models. Different procedures for model selection and model specification are treated and a wide range of tests and criteria for model checking are introduced. Causality analysis, impulse response analysis and innovation accounting are presented as tools for structural analysis. It bridges the gap to the difficult technical literature on the topic as it is a highly accessible and user-friendly work. In addition, multiple time series courses in other fields such as statistics and engineering may be based on it.
This paper examines the interrelations between self-employment and unemployment rates for Spain in the period 1972-2004, comparing them with the general pattern observed for OECD countries. We apply the model as proposed by Audretsch, Carree, van Stel and Thurik (2005) to Spain. The divergence between predicted and actual unemployment levels in Spain are explained by countryspecific shocks in the period under study, which are outside the scope of the model. This indicates that the general mechanism of employment generation by the selfemployed may also be applicable to Spain, at least in the long run. The Spanish industrial structure is characterized by a relatively high and fluctuating unemployment level and a relatively high and stable business ownership rate, suggesting that the quantity of business ownership in Spain does not have a particularly large contribution to bringing down unemployment. In recent years we see that the unemployment rate decreases and stabilizes. We argue that, in addition to several labor market reforms, an increase in the quality of business ownership in Spain may also have contributed to the recent decrease in the unemployment rate. Este trabajo analiza la relación entre el autoempleo y las tasas de desempleo en España para el periodo 1972-2004, comparando los resultados obtenidos con el patrón general observado en los países de la OCDE. El estudio utiliza el modelo propuesto por Audretsch, Carree, van Stel y Thurik (2005) para el caso de España. Las diferencias entre los niveles de desempleo estimado y real en España se explican fundamentalmente por características específicas de la economía española para el periodo considerado, las cuales quedan fuera del alcance del modelo utilizado. Así pues, el mecanismo general de la generación de empleo a través del autoempleo puede ser aplicable para España, al menos en lo referente al largo plazo. En términos generales, la estructura industrial española se caracteriza por un lado, por un nivel de desempleo relativamente elevado y fluctuante, y por otro, por unas tasas relativamente elevadas y estables de autoempleo, sugiriendo que la cantidad de autoempleo en España no contribuye de forma relevante a la reducción del desempleo. De todas formas, se observa que en los últimos años la tasa de desempleo ha disminuido a la vez que estabilizado. En este sentido, en el presente estudio se argumenta que, adicionalmente a las distintas reformas producidas en el mercado de trabajo español, dicha reducción del desempleo viene explicada por un aumento en la calidad del autoempleo.
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.
This paper constructs a model of saving for retired single people that includes heterogeneity in medical expenses and life expectancies, and bequest motives. We estimate the model using Assets and Health Dynamics of the Oldest Old data and the method of simulated moments. Out-of-pocket medical expenses rise quickly with age and permanent income. The risk of living long and requiring expensive medical care is a key driver of saving for many higher-income elderly. Social insurance programs such as Medicaid rationalize the low asset holdings of the poorest but also benefit the rich by insuring them against high medical expenses at the ends of their lives. (c) 2010 by The University of Chicago. All rights reserved..
Entrepreneurship and unemployment: a litrature review
- M Babaginda
- D M Semasinghe
New work new culture: work we want and a culture that strengthens Us
- F Bergmann
Testing for granger causality
- D Giles
Can entrepreneurship solve the youth unemployment crisis? | World Economic Forum
- M Pinelli
Evaluarea eficienței și impactului Strategiei naționale de ocupare a forței de muncă 2014-2020 la jumătatea perioadei de implementare. Study/Evaluation of the efficiency and impact of the National Employment Strategy 2014-2020 at the mid-term
- S Pîrciog
- C Lincaru
The relationship between unemployment and entrepreneurship: a case of opolskie voivodship
- M Szewczyk
- K Widera
- R Parvi
Flexibility, uncertainty and manpower management
- J Atkinson
The relationship between shadow economy and unemployment rate. a ardl causality analysis for the case of Romania
- A A Davidescu
Evidence of opportunity and necessity driven entrepreneurship in Nigeria
- A Garba
- F Djafar
- S A Mansor