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Entrepreneurship and unemployment: a nonlinear bidirectional causality

Joao Ricardo Faria, Juan Cuestas and Estefanía Mourelle

NBS Discussion Papers in Economics from Economics, Nottingham Business School, Nottingham Trent University

Abstract: This paper tests the view that the relation between unemployment and entrepreneurship is dynamic and possibly nonlinear. It performs Granger-causality tests and STAR-EXT estimation to assess the causality direction and the nonlinear nature of the relation for a set of OECD countries. The results reveal a bidirectional and nonlinear relation between business creation and changes in unemployment.

Keywords: New firms; employment creation; causality; nonlinearities; STAR-EXT (search for similar items in EconPapers)
JEL-codes: J69 L26 M13 (search for similar items in EconPapers)
Date: 2008-06
New Economics Papers: this item is included in nep-ent and nep-lab
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http://www.ntu.ac.uk/__data/assets/pdf_file/0011/3 ... and-unemployment.pdf First version, 2008 (application/pdf)

Related works:
Journal Article: Entrepreneurship and unemployment: A nonlinear bidirectional causality? (2010) Downloads
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