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Economy and Divorces: Their Impact Over Time on the Self-Employment Rates in Spain

George Saridakis (), Anne-Marie Mohammed (), Jesus M. Garcia-Iglesias () and Rebeca I. Muñoz Torres ()
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Anne-Marie Mohammed: The University of the West Indies
Rebeca I. Muñoz Torres: Westminster University

Journal of Family and Economic Issues, 2018, vol. 39, issue 3, 422-435

Abstract: Abstract The paper used time-series data and examined the effect of economic and social variables on the male and female self-employment rates in Spain. We also employed cointegration analysis (with and without) structural breaks. We thus find strong evidence that long run relationships exist among the variables. More precisely, we find that the unemployment rates and the ratio of self-employment to employees’ earnings have a positive effect on self-employment, whereas, economic development and divorce rates have a negative effect. Importantly, we find that the economic variables have equal or stronger long run impact on females than males, with both groups reacting to changes in family circumstances. Finally, we show that the short run family circumstances are better predictors of self-employment choices rather than economic factors, with self-employment being a means of adjustment to new personal circumstances and economic needs.

Keywords: Self-employment; Economy; Divorce; Gender; Spain; Cointegration (search for similar items in EconPapers)
Date: 2018
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