| 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.. New firms, employment creation, causality, nonlinearities, STAR-EXT | |||||||
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