Unemployment leads to lower earnings for self-employed workers, study finds.
The article examines why people choose to start their own businesses in countries with high unemployment rates and strict labor laws. By studying data from Spain over the past 30 years, the researchers found that the decision to become self-employed is influenced by economic conditions and age. They also discovered that people who switch from being unemployed to self-employed tend to earn less when they go back to traditional jobs. This suggests that policies promoting self-employment may need to be adjusted.