Does Unemployment Contribute to Self-employment and Productivity in Regions? A Causal Examination Adopting a Cross-Lagged Design

Daniel Örtqvist () and Thomas Ejdemo
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Daniel Örtqvist: Luleå University of Technology
Thomas Ejdemo: Luleå University of Technology

A chapter in The Palgrave Handbook of Minority Entrepreneurship, 2021, pp 391-408 from Springer

Abstract: Abstract There are many suggested benefits of transitioning from unemployed to self-employed. Still, unemployed have been identified as a disadvantaged group to start and sustain new businesses. Alternative theoretical explanations have been suggested and empirical results that have been presented are ambiguous. Focusing on potential co-existence of alternative explanations, this chapter sets out to examine the causality between unemployment and outcomes in terms of self-employment and regional productivity. The results from this study suggests that regional levels of unemployment will be unrelated to future levels of self-employment and regional productivity. However, this study provides strong support that increased levels of self-employment and regional productivity reduces future regional unemployment.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-66603-3_18

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DOI: 10.1007/978-3-030-66603-3_18

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