Austerity Measures Impact on Entrepreneurship, Employment as Well as Income Distribution: A Panel Data Analysis in EU

Abstract

In the present paper a discussion will be made about the crucial topic of fostering entrepreneurship as the cornerstone of capitalism (by avoiding too hard austerity measures and helping instead entrepreneurship in various ways) so as to make corporations profitable and ultimately create jobs, avoid social unrest, improve income distribution and reduce the ratio “debt/GDP”. The sample covers EU. Data are taken from Eurostat and their elaboration is made feasible through the E-views software package.