Rising Self-employment in the Midst of High Unemployment: An Empirical Analysis of Recent Developments in Canada - ARCHIVED

The fixed-effects modelling results show a statistically significant but empirically small negative (positive) relationship between self-employment and unemployment (full-time paid- employment). This conclusion holds true across different data sources, for different time periods, for different measures and definitions, for different empirical samples, and across various estimating techniques. There is also a statistically significant but empirically small negative (positive) relationship between exits out of self-employment and unemployment (full-time paid- employment). It appears that a host of non-cyclical factors are behind the recent surge in self-employment.