2023-09-28 14:46:10 +00:00
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abstract: 'Turning unemployment into self-employment has become an increasingly
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important part of active labor market policies (ALMP) in many OECD
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countries. Germany is a good example where the spending on start-up
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subsidies for the unemployed accounted for nearly 17\% of the total
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spending on ALMP in 2004. In contrast to other programs like vocational
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training, job creation schemes, or wage subsidies the empirical evidence
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on the effectiveness of such schemes is still scarce: especially
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regarding long-term effects and effect heterogeneity. This paper aims to
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close this gap. We use administrative and survey data from a large
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sample of participants in two distinct start-up programs and a control
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group of unemployed individuals. We find that over 80\% of participants
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are integrated in the labor market and have relatively high labor income
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five years after start-up. Additionally, participants are much more
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satisfied with their current occupational situation compared to previous
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jobs. Based on propensity score matching methods we estimate the
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long-term effects of the programs against non-participation and take
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great care in assessing the sensitivity of our results with respect to
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deviations from the identifying assumption. Our results turn out to be
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robust and show that both programs are effective with respect to income
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and employment outcomes in the long-run, i.e., five years after
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start-up. Moreover, we consider effect heterogeneity with respect to
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several dimensions and show that startup subsidies for the unemployed
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tend to be most effective for disadvantaged groups in the labor market.
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(C) 2010 Elsevier BM. All rights reserved.'
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affiliation: 'Caliendo, M (Corresponding Author), IZA, Inst Study Lab, POB 7240, D-53072
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Bonn, Germany.
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Caliendo, Marco, IZA, Inst Study Lab, D-53072 Bonn, Germany.
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Kuenn, Steffen, FU Berlin, Berlin, Germany.
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Caliendo, Marco, DIW Berlin, Berlin, Germany.
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Caliendo, Marco, IAB, Berlin, Germany.'
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author: Caliendo, Marco and Kuenn, Steffen
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author-email: 'caliendo@iza.org
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kuenn@iza.org'
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author_list:
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- family: Caliendo
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given: Marco
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- family: Kuenn
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given: Steffen
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da: '2023-09-28'
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doi: 10.1016/j.jpubeco.2010.11.003
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files: []
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issn: 0047-2727
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journal: JOURNAL OF PUBLIC ECONOMICS
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keywords: 'Start-up subsidies; Self-employment; Evaluation; Long-term effects;
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Effect heterogeneity'
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keywords-plus: LABOR-MARKET PROGRAMS; SELF-EMPLOYMENT; PROPENSITY SCORE; GERMANY
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language: English
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month: APR
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number: 3-4, SI
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number-of-cited-references: '58'
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pages: 311-331
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papis_id: 33eae18853681a20e5164f6a7310ffb0
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ref: Caliendo2011startupsubsidies
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times-cited: '76'
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title: 'Start-up subsidies for the unemployed: Long-term evidence and effect heterogeneity'
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000288921600013
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usage-count-last-180-days: '1'
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usage-count-since-2013: '29'
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volume: '95'
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web-of-science-categories: Economics
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year: '2011'
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