The study investigates the relationship between three different types of unemployment and urban self-employment in China. In spite of numerous studies on factors driving entrepreneurship and self-employment, previous literature has not shed a consistent light on the association between unemployment and self-employment. This study therefore drills down to three different types of unemployment-retirement resignation, and layoff to further conduct this investigation. Data from the China Labor Statistical Yearbooks are used. A panel data model is adopted to examine three different unemployment forces for self-employment propensityretirement propensity, resignation propensity, and layoff propensity among the unemployed. We found that retirement and resignation among those unemployed are associated with selfemployment rate growth, while the effect of those laid-off is unclear. The study interpreted the findings and indicated research limitations and future research directions.
The study investigates the relationship between three different types of unemployment and urban self-employment in China. In spite of numerous studies on factors driving entrepreneurship and self-employment, previous literature has not shed a consistent light on the association between unemployment and self-employment. This study therefore drills down to three different types of unemployment—retirement resignation, and layoff to further conduct this investigation. Data from the China Labor Statistical Yearbooks are used. A panel data model is adopted to examine three different unemployment forces for self-employment propensity—retirement propensity, resignation propensity, and layoff propensity among the unemployed. We found that retirement and resignation among those unemployed are associated with self-employment rate growth, while the effect of those laid-off is unclear. The study interpreted the findings and indicated research limitations and future research directions.