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
| Title | The Relationship between Self-employment and Unemployment in the Long-Run: A Panel Cointegration Approach Allowing For Breaks |
|---|---|
| Type | Journal article |
| Authors | Saridakis, 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. |
| Keywords | self-employment, unemployment, Europe, panel cointegration, long-run, structural breaks |
| Journal | Journal of Economic Studies |
| Journal citation | 43 (3), pp. 358-379 |
| ISSN | 0144-3585 |
| Year | 2016 |
| Publisher | Emerald Publishing Limited |
| Digital Object Identifier (DOI) | https://doi.org/10.1108/JES-11-2013-0169 |
| Publication dates | |
| Published | 03 Aug 2016 |