Small Business Economics

, Volume 4, Issue 2, pp 87–103 | Cite as

Does unemployment lead to self-employment?

  • Nigel Meager


The currently burgeoning literature on the nature of and the causes for the recent reverse in the downward trend in self-employment in many developed economies, contains a somewhat inconclusive debate on the relationship between unemployment and self-employment, and whether self-employment fluctuates pro- or countercyclically. This paper reviews this literature, presents some recent evidence for EC countries, and argues that the approach in the previous research of searching for relationships between unemployment and self-employment stocks is fundamentally inappropriate. A new approach, based on an analysis of inflows to and outflows from self-employment, is called for.


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Copyright information

© Kluwer Academic Publishers 1992

Authors and Affiliations

  • Nigel Meager
    • 1
    • 2
  1. 1.Institute of Manpower StudiesUniversity of SussexBrightonUK
  2. 2.Wissenschaftszentrum Berlin für SozialforschungBerlin 30Germany

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