Entrepreneurship and Unemployment in the UK
Scottish Journal of Political Economy , Volume 50 - Issue 3 p. 264- 290
The influence of industrial structure, more specifically of entrepreneurship, is investigated on the level of unemployment in the UK. The question is to what extent entrepreneurship, i.e., business ownership can reduce the level of unemployment. The alleged differences between the managed and the entrepreneurial economy will be discussed as well as the links between entrepreneurship and unemployment. It will be concluded that the UK is a relative outlier when using a simple model of the relationship between unemployment and the rate of business ownership. The model is calibrated using recent data of some 23 OECD countries. It underestimates the decrease in unemployment in the UK in the period 1982–1990. Some arguments are brought forward why this might be the case.
|Scottish Journal of Political Economy
|Erasmus Research Institute of Management
Thurik, R. (2003). Entrepreneurship and Unemployment in the UK. Scottish Journal of Political Economy, 50(3), 264–290. doi:10.1111/1467-9485.5003001