Entrepreneurship and unemployment: a nonlinear bidirectional causality

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.

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Year of publication:	2008-06
Authors:	Faria, Joao Ricardo ; Cuestas, Juan Carlos ; Mourelle, Estefania
Institutions:	Nottingham Trent University, Nottingham Business School, Economics Division
Subject:	New firms \| employment creation \| causality \| nonlinearities \| STAR-EXT

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Classification:	J69 - Mobility, Unemployment, and Vacancies. Other ; L26 - Entrepreneurship ; M13 - Entrepreneurship
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004980081