Self-employment as an alternative to unemployment

Data from the NLSY show that more than a quarter of all younger men experience some period of self- employment. Many of them return to wage work. This paper analyzes a simple model of job search and self- employment where self- employment provides an alternative source of income for unemployed workers. Self- employment is distinct from wage sector employment in two important respects. First, self- employment is a low-income, low- variation alternative to wage work. Second, once a worker enters self-employment, he loses eligibility to receive unemployment insurance benefits—at least until he returns to wage sector employment. The model suggests that flows into self-employment are countercyclical and flows out of self-employment are procyclical. Data from the NLSY for males at least 21 years of age are used to investigate how demographic and economic variables influence the decision to become self- employed. Fixed effects and random effects logit results indicate that young men are more likely to be self-employed when their wage work opportunities are more limited. Specifically, higher local unemployment rates lead workers to self- select into self-employment, as does past unemployment experience. The process is different for Whites and Nonwhites with education being irrelevant for White self- employed workers. In contrast, for Nonwhites higher education reduces the probability of entering self-employment.Self-employed ; Unemployment

Labor market transitions and self-employment

The self-employed are a heterogeneous group. Some are self-employed because they are good at it, while others are self-employed because they cannot find a better paying salaried job. Data from the CPS for prime age males show that workers are almost twice as likely to enter self-employment from unemployment as from paid employment. Furthermore, almost 22% of workers exit self-employment within the year with most returning to paid employment. This paper develops a framework for examining transitions between the labor market states of unemployment, paid employment, and self-employment. The self-employed fall into two groups: those who continue to seek paid employment in the wage and salary sector and those whose value from self-employment exceeds the expected value from continued search. The calibrated model is used to examine the effects of business startup costs on labor market transition rates. Doubling startup costs has very little impact on these rates.Labor market ; Self-employed

Agency drives category structure in instrumental events

Thematic roles such as Agent and Instrument have a long-standing place in theories of event representation. Nonetheless, the structure of these categories has been difficult to determine. We investigated how instrumental events, such as someone slicing bread with a knife, are categorized in English. Speakers described a variety of typical and atypical instrumental events, and we determined the similarity structure of their descriptions using correspondence analysis. We found that events where the instrument is an extension of an intentional agent were most likely to elicit similar language, highlighting the importance of agency in structuring instrumental categories

Regional employment growth and the business cycle

Employment growth is highly correlated across regions. The author uses joint movements in regional employment growth to define and estimate a common factor, analogues to the business cycle. Regions differ substantially in the relative importance of cyclical shocks and idiosyncratic shocks in explaining the steady state variance in regional employment growth. For example, cyclical shocks account for almost 90 percent of the steady state variance in employment growth in the East South Central region and about 40 percent in the West South Central Region.Employment (Economic theory) ; Regional economics ; Business cycles

Sectoral wage growth and inflation

Inflation (Finance) ; Productivity ; Wages

Employment growth: cyclical movements or structural change?

In judging the degree of slack in the economy, policymakers must determine the origin of any increase in the unemployment rate—specifically, how much of it is due to a cyclical slowdown (driven by the broader economy) as opposed to a structural realignment in production (driven by a shift in production from declining industries to expanding ones). The model developed in this article provides some insight into the sources and magnitude of structural change and its impact on the unemployment rate.Employment ; Business cycles

The self-employment duration of younger men over the business cycle

Spells of self-employment for younger men are typically of short duration with slightly more than half lasting two years or less. This article examines factors that lead to longer durations, focusing on the role of cyclical factors in distinguishing entrepreneurs from discouraged wage workers.Self-employed ; Business cycles

Can sectoral labor reallocation explain the jobless recovery?

Labor market ; Labor mobility ; Unemployment

Reflections on the Utility of the Retina as a Biomarker for Alzheimer's Disease: A Literature Review.

As a part of the central nervous system, the retina may reflect both physiologic processes and abnormalities related to diseases of the brain. Indeed, a concerted effort has been put forth to understand how Alzheimer's disease (AD) pathology may manifest in the retina as a means to assess the state of the AD brain. The development and refinement of ophthalmologic techniques for studying the retina in vivo have produced evidence of retinal degeneration in AD diagnosed patients. In this review, we will discuss retinal imaging techniques implemented to study the changes in AD retina as well as highlight the recent efforts made to correlate such findings to other clinical hallmarks of AD to assess the viability of the retina as a biomarker for AD

Frontoparietal representations of task context support the flexible control of goal-directed cognition.

Cognitive control allows stimulus-response processing to be aligned with internal goals and is thus central to intelligent, purposeful behavior. Control is thought to depend in part on the active representation of task information in prefrontal cortex (PFC), which provides a source of contextual bias on perception, decision making, and action. In the present study, we investigated the organization, influences, and consequences of context representation as human subjects performed a cued sorting task that required them to flexibly judge the relationship between pairs of multivalent stimuli. Using a connectivity-based parcellation of PFC and multivariate decoding analyses, we determined that context is specifically and transiently represented in a region spanning the inferior frontal sulcus during context-dependent decision making. We also found strong evidence that decision context is represented within the intraparietal sulcus, an area previously shown to be functionally networked with the inferior frontal sulcus at rest and during task performance. Rule-guided allocation of attention to different stimulus dimensions produced discriminable patterns of activation in visual cortex, providing a signature of top-down bias over perception. Furthermore, demands on cognitive control arising from the task structure modulated context representation, which was found to be strongest after a shift in task rules. When context representation in frontoparietal areas increased in strength, as measured by the discriminability of high-dimensional activation patterns, the bias on attended stimulus features was enhanced. These results provide novel evidence that illuminates the mechanisms by which humans flexibly guide behavior in complex environments