Unemployment and new business formation – new insights into a complex relationship

Dirk Dohse and Andrea Vaona

Applied Economics Letters, 2018, vol. 25, issue 8, 523-526

Abstract: The article analyses the interrelation between unemployment and new business formation using panel data for a large cross-section of countries. We find robust evidence for a positive influence of unemployment, domestic credit to the private sector and business-friendly regulation on new business formation. Our examination does, however, indicate no support for the view that new business formation significantly reduces national unemployment rates.

Date: 2018
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DOI: 10.1080/13504851.2017.1343437

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