Effect of entrepreneurship and urbanization on unemployment: empirical evidence for 58 countries, using panel data techniques

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Published: nov. 9, 2020
Keywords:
Entrepreneurship, Urbanization, Unemployment

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Fernando Jumbo
Universidad Nacional de Loja
Pablo González
Universidad Nacional de Loja
Jorge Flores-Chamba
Universidad Nacional de Loja

Abstract

Unemployment is both an economic and a social problem. An economy with high unemployment rates is not using its resources efficiently. That is why this research aims to evaluate the effect of entrepreneurship and urbanization on unemployment for 58 countries, during the period 2002-2017 using technique. This document uses panel data techniques such as the Hausman test (1978) and the GLS model. The results are the following: first, from entrepreneurship, it has a negative effect at the Global, HIC, and MLIC levels, and it is statistically insignificant concerning unemployment. Second, urbanization has a positive and significant impact on both the Global, HIC and MHIC levels. Among the possible policy implications, future research is recommended to deal with the subject because the results are not significant. On the other hand, it is necessary to create adequate policies on the part of the governments that allow the insertion in the rural population's labor market in urban areas and contribute to the improvement of the living conditions of people displaced by the process of urbanization. Finally, the research provides relevant empirical evidence since it relates variables that explain the behavior of unemployment.

Article Details

How to Cite
Jumbo, F., González, P., & Flores-Chamba, J. (2020). Effect of entrepreneurship and urbanization on unemployment: empirical evidence for 58 countries, using panel data techniques. Revista Económica, 8(1), 57–66. Retrieved from https://revistas.unl.edu.ec/index.php/economica/article/view/842
Issue
Vol. 8 No. 1 (2020): Revista Económica vol 8 (Enero-Junio 2020)
Section
RESEARCH ARTICLES
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