Cultural hysteresis, entrepreneurship and economic crisis
Year: 2016
Type: article
Abstract: Entrepreneurship has been advocated as one of the major solutions for coping with (youth) unemployment in Europe during the recent economic downturn. Entrepreneurial activity is generally co-determined by economic and cultural factors. However, cultural change normally requires a much longer time to take place than economic changes do. This may prompt a so-called cultural hysteresis effect in the efficiency of entrepreneurial incentives. To analyze these effects, data from the Global Entrepreneurship Monitor (2003–2010) are used. A Two-Stage Least Square instrumental variable and a logit model with difference-in-differences are employed. We find that the cultural hysteresis is less prominent among Mediterranean countries. Moreover, it is almost negligible in the response to incentives by female youth.
DOI: 10.1093/cjres/rsv035
Authors: Annie Tubadji, Peter Nijkamp, Vassilis Angelis
Institution: University of Bologna
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2309914160