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Unemployment reduction through solo self-employment: A gender question?

Tina Haussen () and Marcus Schlegel ()
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Tina Haussen: University of Jena
Marcus Schlegel: University of Erfurt

Empirical Economics, 2020, vol. 59, issue 6, No 20, 3085-3105

Abstract: Abstract This paper examines at the macro-level whether changes in solo self-employment rates lead to changes in unemployment rates with a special emphasis on the role of the gender of the solo self-employed. This gender-specific perspective on self-employment is important because gender differences are reflected in the individual motivation to become self-employed, the self-selection into differently productive sectors and in the performance of the businesses founded. To empirically approach the research question, macro-level panel data from 23 OECD countries during the period 1991–2015 are used. Since the relationship between solo self-employment and unemployment is likely reciprocal and dynamic, population-weighted vector autoregressive models are estimated and Granger-causality tests are performed. The econometric results indicate that solo self-employment can create positive (indirect) employment effects in the medium to long term, regardless of gender. However, male solo self-employment affects employment growth somewhat faster than does female solo self-employment.

Keywords: Solo self-employment; Unemployment; Gender; VAR (search for similar items in EconPapers)
JEL-codes: J23 J64 L26 L53 M13 O11 J16 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s00181-019-01754-w

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