Self-Employment and Unemployment in Spanish Regions in the Period 1979-2001

14 Pages Posted: 5 Oct 2007

See all articles by Antonio A. Golpe

Antonio A. Golpe

University of Huelva; University of Huelva - Economics and Statistics

Andre J. van Stel

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics

Date Written: June 2007

Abstract

This paper investigates the relation between changes in self-employment and changes in unemployment at the regional level in Spain in the period 1979-2001. We estimate a vector autoregression model as proposed by Audretsch, Carree, van Stel and Thurik (2005) using a data base for Spanish regions. By estimating the model we are able to empirically distinguish between two directions of causality. On the one hand increases in self-employment may contribute to lower unemployment rates (the 'entrepreneurial' effect). On the other hand, higher unemployment rates may push individuals into self-employment, thereby contributing to higher self-employment rates (the 'refugee' effect). In our analysis of these two effects we distinguish between higher and lower income regions within Spain. We find empirical support for the 'entrepreneurial' effect to exist, both in higher income and in lower income regions. As regards the 'refugee' effect, the evidence is mixed. We find empirical support for this effect for higher income regions. Remarkably, we do not find evidence for a 'refugee' effect in lower income regions of Spain, even though unemployment rates are on average higher in these regions. We argue that this may be partly related to a lack of incentives for unemployed individuals in these regions to find paid employment.

Keywords: entrepreneurship, self-employment, unemployment, economic growth, Spain

JEL Classification: E24, L11, M13, O10, O52

Suggested Citation

Golpe Moya, Antonio Anibal and van Stel, Andre J., Self-Employment and Unemployment in Spanish Regions in the Period 1979-2001 (June 2007). Jena Economic Research Paper No. 2007-021. Available at SSRN: https://ssrn.com/abstract=1019433 or http://dx.doi.org/10.2139/ssrn.1019433

Antonio Anibal Golpe Moya (Contact Author)

University of Huelva ( email )

Huelva
Spain

University of Huelva - Economics and Statistics ( email )

Plaza de la Merced 11
Huelva, Huelva 21071
Spain
0034959217832 (Phone)
0034959217828 (Fax)

Andre J. Van Stel

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics ( email )

Kahlaische Strasse 10
D-07745 Jena, 07745
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
87
Abstract Views
591
rank
288,118
PlumX Metrics