Subsidized start-ups out of unemployment: a comparison to regular business start-ups
"Offering unemployed individuals a subsidy to become self-employed is a widespread active labor market policy strategy. Previous studies have illustrated its high effectiveness to help participants escaping unemployment and improving their labor market prospects compared to other unemployed ind...
| Main Authors: | , , , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Bonn
2015
IZA |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19115481124919336639-Subsidized-start-ups-out-of-un.htm |
| _version_ | 1771659901547839489 |
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| author | Caliendo, Marco Hogenacker, Jens Künn, Steffen Wiessner, Frank |
| author_facet | Caliendo, Marco Hogenacker, Jens Künn, Steffen Wiessner, Frank |
| collection | Library items |
| description | "Offering unemployed individuals a subsidy to become self-employed is a widespread active labor market policy strategy. Previous studies have illustrated its high effectiveness to help participants escaping unemployment and improving their labor market prospects compared to other unemployed individuals. However, the examination of start-up subsidies from a business perspective has only received little attention to date. Using a new dataset based on a survey allows us to compare subsidized start-ups out of unemployment with regular business founders, with respect to not only personal characteristics but also business outcomes. The results indicate that previously unemployed entrepreneurs face disadvantages in variables correlated with entrepreneurial ability and access to capital. 19 months after start-up, the subsidized businesses experience higher survival, but lag behind regular business founders in terms of income, business growth and innovation. Moreover, we show that expected deadweight losses related to start-up subsidies occur on a (much) lower scale than usually assumed." |
| format | TEXT |
| geographic | Germany |
| id | 19115481124919336639_6210d477e41a43939e69d0ec5aeff955 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19115481124919336639_6210d477e41a43939e69d0ec5aeff955 |
| is_hierarchy_title | Subsidized start-ups out of unemployment: a comparison to regular business start-ups |
| language | English |
| physical | 39 p. Digital |
| publishDate | 2015 |
| publisher | Bonn IZA |
| spellingShingle | Caliendo, Marco Hogenacker, Jens Künn, Steffen Wiessner, Frank self employment SME unemployment employment subsidy Subsidized start-ups out of unemployment: a comparison to regular business start-ups |
| title | Subsidized start-ups out of unemployment: a comparison to regular business start-ups |
| topic | self employment SME unemployment employment subsidy |
| url | https://www.labourline.org/KENTIKA-19115481124919336639-Subsidized-start-ups-out-of-un.htm |