The links between unemployment and self-employment: evidence from the EU countries

Abstract

The purpose of this work is to research the links between the unemployment and self-employment rates in the EU member states and provide recommendations on how to manage these links. The results of the empirical study have established that measures to reduce the global unemployment rate, suitable for all EU Member States, cannot be placed on the labor market. Calculations have shown that in the period of 2007-2017, which covered the financial crisis and the upturn, EU countries need to be grouped into specific groups and for each group of countries select appropriate measures to reduce unemployment. The first group of EU countries experienced a “pull“ factor effect, the second was the effect of the “push“ factor, on unemployment, thus making in the first group of countries more effective self-employment measures to reduce unemployment while the second group of countries - supporting self-employment measures was ineffective in combating unemployment problems.