Resumen de How sensitive is the business ownership rate to unemployment fluctuations? Evidence of asymmetries in a panel of 23 OECD countries
Mónica Carmona Arango, Emilio Congregado Ramírez de Aguilera, Antonio Aníbal Golpe Moya
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.
