The Relationship between Self-employment and Unemployment in the Long-Run: A Panel Cointegration Approach Allowing For Breaks

Saridakis, G., Mendoza, M.A., Muñoz Torres, R.I. and Glover, J. 2016. The Relationship between Self-employment and Unemployment in the Long-Run: A Panel Cointegration Approach Allowing For Breaks . Journal of Economic Studies. 43 (3), pp. 358-379. https://doi.org/10.1108/JES-11-2013-0169

TitleThe Relationship between Self-employment and Unemployment in the Long-Run: A Panel Cointegration Approach Allowing For Breaks
TypeJournal article
AuthorsSaridakis, G., Mendoza, M.A., Muñoz Torres, R.I. and Glover, J.
Abstract

Although a lot of research has been done on the link between self-employment and unemployment, often focusing on the short-run of the relationship, the long-run association between the two variables has not received adequate attention. In this paper we examine the long-run relationship between self-employment and unemployment using panel cointegration methods allowing for structural breaks and covering a wide range of European OECD countries using the COMPENDIA dataset over the period 1990-2011. Our findings indicate that a long-run relationship between self-employment and unemployment exist in the panel, but the cointegrating coefficients are unstable. Our estimates finds that positive and statistically significant long-run association between self-employment and unemployment exists for more than 50% of the countries included in the sample after the break. For the rest of the countries we find either negative or statistically insignificant association.

Keywordsself-employment, unemployment, Europe, panel cointegration, long-run, structural breaks
JournalJournal of Economic Studies
Journal citation43 (3), pp. 358-379
ISSN0144-3585
Year2016
PublisherEmerald Publishing Limited
Digital Object Identifier (DOI)https://doi.org/10.1108/JES-11-2013-0169
Publication dates
Published03 Aug 2016

Related outputs

Impact of Covid-19 Policies on Women Self-employment Rates: An Integrated Conceptual Framework
Abubakar, Y. A., Saridakis, G., Litsardopoulos, N., Muñoz Torres, R.I., Sookram, S. and Hosein, R. 2023. Impact of Covid-19 Policies on Women Self-employment Rates: An Integrated Conceptual Framework. International Review of Entrepreneurship. 21 (1), pp. 1-34 1691.

From subsistence farming to agribusiness and nonfarm entrepreneurship: Does it improve economic conditions and well-being?
Saridakis, G., Georgellis, Y., Muñoz Torres, R.I., Mohammed, A-M. and Blackburn, R. 2021. From subsistence farming to agribusiness and nonfarm entrepreneurship: Does it improve economic conditions and well-being? Journal of Business Research. 136, pp. 567-579. https://doi.org/10.1016/j.jbusres.2021.07.037

Do regional self-employment rates converge in the UK? Empirical evidence using club-clustering algorithm
Saridakis, G., Mendoza, M.A., Hand C. and Muñoz Torres, R.I. 2020. Do regional self-employment rates converge in the UK? Empirical evidence using club-clustering algorithm. The Annals of Regional Science. 65, pp. 179-192. https://doi.org/10.1007/s00168-020-00979-3

Exploring the relationship between job satisfaction and organizational commitment: An instrumental variable approach
Saridakis, G., Lai, Y., Muñoz Torres, R.I. and Gourlay, S. 2020. Exploring the relationship between job satisfaction and organizational commitment: An instrumental variable approach. International Journal of Human Resource Management. 31 (13), pp. 1739-1769. https://doi.org/10.1080/09585192.2017.1423100

Monetary Policy Rules with PID Control Features: Evidence from the UK, USA and EU
Shepherd, D., Muñoz Torres, R.I. and Saridakis, G. 2019. Monetary Policy Rules with PID Control Features: Evidence from the UK, USA and EU. International Review of Applied Economics. 33 (6), pp. 737-755 CIRA-2018-0245. https://doi.org/10.1080/02692171.2019.1585766

Do self-employment rates converge? Evidence from European OECD countries
Saridakis, G., Mendoza, M.A., Muñoz Torres, R.I. and Hand, C. 2018. Do self-employment rates converge? Evidence from European OECD countries. Journal of Common Market Studies. 57 (3), pp. 551-562. https://doi.org/10.1111/jcms.12834

Economy and Divorces: Their impact over time on the Self-Employment Rates in Spain
Saridakis, G., Mohammed, A.M., Garcia-Iglesias, J.M. and Muñoz Torres, R.I. 2018. Economy and Divorces: Their impact over time on the Self-Employment Rates in Spain. Journal of Family and Economic Issues. 39 (3), pp. 422-435. https://doi.org/10.1007/s10834-018-9575-6

Actual and Intended Growth in Family Firms and Non-Family Owned Firm: Are They Different?
Saridakis, G., Lai, Y., Muñoz Torres, R.I. and Mohammed, A.M. 2018. Actual and Intended Growth in Family Firms and Non-Family Owned Firm: Are They Different? Journal of Organizational Effectiveness: People and Performance. 5 (1), pp. 2-21 602747. https://doi.org/10.1108/JOEPP-04-2017-0033

Economic Growth and Regional Integration in Mexico
Shepherd, D., Muñoz Torres, R.I. and Mendoza, M.A. 2017. Economic Growth and Regional Integration in Mexico. Economic Issues. 22 (1), pp. 89-110.

Regional Output Growth and the Impact of Macroeconomic Shocks in Mexico
Shepherd, D., Muñoz Torres, R.I. and Mendoza, M.A. 2014. Regional Output Growth and the Impact of Macroeconomic Shocks in Mexico. International Review of Applied Economics . 28 (3), pp. 293-210. https://doi.org/10.1080/02692171.2013.872083

Inflation targeting and the consistency of monetary policy decisions in Mexico: an empirical analysis with discrete choice models
Muñoz Torres, R.I. and Shepherd, D. 2014. Inflation targeting and the consistency of monetary policy decisions in Mexico: an empirical analysis with discrete choice models. The Manchester School. 82 (S2), pp. 21-46. https://doi.org/10.1111/manc.12039

Do human resource practices enhance organizational commitment in SMEs with low employee satisfaction?
Saridakis, G., Muñoz Torres, R.I. and Johnstone, S. 2013. Do human resource practices enhance organizational commitment in SMEs with low employee satisfaction? British Journal of Management. 24 (3), pp. 445-458. https://doi.org/10.1111/j.1467-8551.2012.00814.x

Did the Bank of Mexico follow a systematic behaviour in its transition to an inflation targeting regime?
Garcia-Iglesias, J.M., Muñoz Torres, R.I. and Saridakis, G. 2013. Did the Bank of Mexico follow a systematic behaviour in its transition to an inflation targeting regime? Applied Financial Economics. 23 (14), pp. 1205-1213. https://doi.org/10.1080/09603107.2013.799755

The effect of the exchange rates on investment in Mexican manufacturing industry
Caglayan, M. and Muñoz Torres, R.I. 2011. The effect of the exchange rates on investment in Mexican manufacturing industry. Open Economies Review. 22 (4), pp. 669-683. https://doi.org/10.1007/s11079-010-9166-0

Economic growth and regional integration in Mexico
Shepherd, D., Muñoz Torres, R.I. and Mendoza, M.A. 2011. Economic growth and regional integration in Mexico. in: Muralidhar Rao, N.V. (ed.) Proceedings of the Annual International Conference on Qualitative and Quantitative Economics Research (QQE 2011) Singapore Global Science & Technology Forum. pp. Q31-Q37

Inflation Targeting in Emerging Economies: A Comparative Sacrifice Ratio Analysis
Muñoz Torres, R.I. 2005. Inflation Targeting in Emerging Economies: A Comparative Sacrifice Ratio Analysis. in: Motamen-Samadian, S. (ed.) Dynamic Models and Their Applications in Emerging and Global Markets Palgrave Macmillan. pp. 77-108

Permalink - https://westminsterresearch.westminster.ac.uk/item/9zw2z/the-relationship-between-self-employment-and-unemployment-in-the-long-run-a-panel-cointegration-approach-allowing-for-breaks


Share this

Usage statistics

87 total views
0 total downloads
These values cover views and downloads from WestminsterResearch and are for the period from September 2nd 2018, when this repository was created.