The road not taken: The transition from unemployment to self-employment in Canada, 1961-1994

The steady decline in self-employment in Canada for much of this century appears to have been reversed in recent years. This pattern is repeated in a large number of western countries. Several explanations have been put forward to explain these revivals. Among the most intensively studied is an ''unemployment push'' hypothesis in which people move into self-employment as a response to unemployment. Although arguments about the meaning of this hypothesis differ, the present study shows that there is no non-seasonal connection between unemployment and self-employment in Canada between 1961 and 1994. Directions for future research are discussed.