How sensitive is the business ownership rate to unemployment fluctuations? Evidence of asymmetries in a panel of 23 OECD countries

• Autores: Mónica Carmona Arango, Emilio Congregado Ramírez de Aguilera, Antonio Aníbal Golpe Moya
• Localización: Descubriendo nuevos horizontes en administracion: XXVII Congreso Anual AEDEM, Universidad de Huelva, 5, 6 y 7 de junio de 2013 / coord. por Juan José García Machado, 2013, ISBN 978-84-7356-914-9
• Idioma: inglés
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• Resumen

  • The aim of this article is to identify whether the relationship running from unemployment to entrepreneurship/self-employment �the so-called 'recession-push' hypothesis- is affected asymmetrically by the labor market dynamics conditions. To this end we employ a panel threshold regression model, proposed by Hansen (1999), in which nonlinearities are introduced by allowing exogenous variable to have a different impact on the endogenous variable depending on the regime. In particular, our estimates provide support to the existence of different responses of cyclical self-employment to cyclical unemployment, depending on the value of the deviation between the observed and natural rate of unemployment one period lagged �i.e. depending on the intensity of the unemployment problem-, which is the threshold variable.