Effect of Entrepreneurship on Job Essay

The relationship between unemployment and entrepreneurship has been shrouded with ambiguity. On the other hand, one follicle in the literature has found that unemployment energizes entrepreneurial activity, which has been known as a " refugee effect”. On the other hand, an extremely different follicle in the literature has determined that higher levels of entrepreneurship reduce lack of employment, or what has been known as a " Schumpeter effect”. Taken together, these two associations result in significant ambiguities about the relationship between unemployment and entrepreneurship. The goal of this conventional paper is to make an effort to reconcile these types of ambiguities simply by introducing a two-equation style, where within unemployment and the number of businesses are linked to subsequent changes in those variables. The style is tested for a -panel of twenty-three OECD countries over the period 1974-1998. The empirical effects confirm the two distinct and separate interactions between lack of employment and entrepreneurship, i. electronic. " Schumpeter ” and " asylum ” effects. Citations

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