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Cohort, Age and Business Cycle Effects in Entrepreneurship in Latin America

  • Daniel Bukstein and Nestor Gandelman EMAIL logo
Published/Copyright: November 23, 2017

Abstract

How the entrepreneurship rate changes with age and the business cycle has been theoretically and empirically studied. On the other hand, cohort effects have been mostly neglected in the literature. Cohort effects are intrinsic generation characteristics that follow individuals over their lifetime and the business cycles. We propose a methodology to differentiate between age, time (business cycle) and cohort effects in entrepreneurship. We find that time effects are highly correlated with GDP growth. Age effects show and inverse U shaped with maximum between 40 and 50 years. In Brazil, Mexico and Uruguay we find decreasing entrepreneurship in younger cohorts, and almost no change in Peru and Chile.

JEL Classification: L26; J11

Appendix

A

Data sources

CountrySurveySource
BrazilPesquisa Nacional por Amostra de DomiciliosInstituto Brasileiro de Geografia e Estatística
ChileEncuesta de Ocupación y DesocupaciónUniversidad de Chile
MexicoInstituto Nacional de Geografía y EstadísticaEncuesta Nacional de Ocupación y Empleo
PeruEncuesta Nacional de HogaresInstituto Nacional de Estadística e Informática
UruguayInstituto Nacional de EstadísticaEncuesta Continua de Hogares
  1. Own elaboration

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Published Online: 2017-11-23

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