Self-employment and business cycle persistence: Does the composition of employment matter for economic recoveries?

Content Provider	Semantic Scholar
Author	Shapiro, Alan Finkelstein
Copyright Year	2014
Abstract	Self-employment comprises an important share of employment in many countries, and tends to expand during downturns through higher inflows from unemployment. Furthermore, countries with higher self-employment shares exhibit lower cyclical output persistence. I build a business cycle model with frictional labor markets where individuals can be self-employed or salaried employed. I show that economies with larger self-employment shares exhibit faster economic recoveries. Differences in the ease of entry into self-employment as the economy recovers explain the contrasting cyclical dynamics. The model successfully captures the cyclical patterns of self-employment and the relationship between self-employment and output persistence in the data.
Starting Page	200
Ending Page	218
Page Count	19
File Format	PDF HTM / HTML
DOI	10.1016/j.jedc.2014.06.014
Alternate Webpage(s)	https://www.frbatlanta.org/-/media/Documents/research/seminars/2014/finkelstein-030314.pdf
Alternate Webpage(s)	http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/sse_321.pdf
Alternate Webpage(s)	https://doi.org/10.1016/j.jedc.2014.06.014
Volume Number	46
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article