Turning unemployment into self-employment: effectiveness and efficiency of two start-up programmes

"Turning unemployment into self-employment has become a major focus of German active labour market policy (ALMP) in recent years. If effective, this would not only reduce Germany’s persistently high unemployment rate, but also increase its notoriously low self-employment rate. Empirical evidenc...

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Main Authors: Baumgartner, Hans J., Caliendo, Marco
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2007
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19125722124919439049-Turning-unemployment-into-self.htm
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author Baumgartner, Hans J.
Caliendo, Marco
author_facet Baumgartner, Hans J.
Caliendo, Marco
collection Library items
description "Turning unemployment into self-employment has become a major focus of German active labour market policy (ALMP) in recent years. If effective, this would not only reduce Germany’s persistently high unemployment rate, but also increase its notoriously low self-employment rate. Empirical evidence on the effectiveness of such programmes is scarce. The contribution of the present paper is twofold: first, we evaluate the effectiveness of two start-up programmes for the unemployed. Our outcome variables include the probability of being employed, the probability of being unemployed, and personal income. Second, based on the results of this analysis, we conduct an efficiency analysis, i.e., we estimate whether the Federal Employment Agency has saved money by placing unemployed individuals in these programmes. Our results show that at the end of the observation period, both programmes are effective and one is also efficient. The considerable positive effects present a stark contrast to findings from evaluations of other German ALMP programmes in recent years. Hence, ALMP programmes aimed at moving the unemployed into self-employment may prove to be among the most effective, both in Germany and elsewhere. "
format TEXT
geographic Germany
id 19125722124919439049_b4a16c83240e41b093f03b2b9e4e67f0
institution ETUI-European Trade Union Institute
is_hierarchy_id 19125722124919439049_b4a16c83240e41b093f03b2b9e4e67f0
is_hierarchy_title Turning unemployment into self-employment: effectiveness and efficiency of two start-up programmes
language English
physical 36 p.
Digital
publishDate 2007
publisher Bonn
IZA
spellingShingle Baumgartner, Hans J.
Caliendo, Marco
evaluation
labour market
self employment
statistics
unemployment
labour market policy
Turning unemployment into self-employment: effectiveness and efficiency of two start-up programmes
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=100426892860
title Turning unemployment into self-employment: effectiveness and efficiency of two start-up programmes
topic evaluation
labour market
self employment
statistics
unemployment
labour market policy
url https://www.labourline.org/KENTIKA-19125722124919439049-Turning-unemployment-into-self.htm