Economic cycles and self-employment: Synthetic Cohort Analysis for Greater Santiago

Rodrigo Montero and Joaquín Pérez ()

Estudios de Economia, 2022, vol. 49, issue 1 Year 2022, 5-30

Abstract: Economic cycles affect both unemployment and the composition of employment, which can have an impact on the well-being of individuals if these changes in composition are involuntary or involve a decrease in the quality of employment. In this article, we study the relationship between economic cycles and self-employment, distinguishing between employers and own-account workers, through a synthetic cohort methodology using data for Chile. The results suggest that the proportion of employers is procyclical and that of own-account workers is countercyclical. This suggests that own-account employment is a refuge in times of crisis from the shortage of wage-based employment. This highlights the importance of designing public policies that would improve the conditions of self-employed workers.

Keywords: Self-employment; employer; own-account. (search for similar items in EconPapers)
JEL-codes: J08 J38 J39 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:udc:esteco:v:49:y:2022:i:1:p:5-30

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