Template-Type: ReDIF-Paper 1.0
Author-Name: Joao Ricardo Faria
Author-Name: Juan Carlos Cuestas
Author-Name: Estefania Mourelle
Title: Entrepreneurship and unemployment: a nonlinear bidirectional causality
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.
File-URL: http://www.ntu.ac.uk/__data/assets/pdf_file/0011/310304/entrepreneurship-and-unemployment.pdf
File-Format: Application/pdf
File-Function: First version, 2008
Creation-Date: 2008-06
Classification-JEL: J69, L26, M13
Keywords: New firms, employment creation, causality, nonlinearities, STAR-EXT
Handle: RePEc:nbs:wpaper:2008/6