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Transfer payment diversion for small business development: British and French experience

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  • Marc Bendick
  • Jr
  • Mary L. Egan
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    Abstract

    Government programs in Britain and France allow the unemployed to receive transfer payments while they attempt to create their own employment through new small businesses. This study finds that businesses formed under those programs, even more than most small enterprises, generate only limited incomes and unstable employment for their proprietors. Also, program participants most in need of help in finding stable employment-those with the sparsest qualifications and resources-are precisely those whose businesses are most likely to fail. The authors therefore conclude that policy makers should not expect this approach, now under consideration by Congress, to provide major assistance to the disadvantaged or long-term unemployed. (Abstract courtesy JSTOR.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 40 (1987)
    Issue (Month): 4 (July)
    Pages: 528-542

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    Handle: RePEc:ilr:articl:v:40:y:1987:i:4:p:528-542

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    Cited by:
    1. Mark Schreiner, 2001. "Microenterprise in the First and Third Worlds," Development and Comp Systems 0108001, EconWPA, revised 27 Dec 2001.
    2. Congregado, Emilio & Golpe, Antonio A. & Parker, Simon C., 2009. "The Dynamics of Entrepreneurship: Hysteresis, Business Cycles and Government Policy," IZA Discussion Papers 4093, Institute for the Study of Labor (IZA).
    3. David G. Blanchflower, 2000. "Self-Employment in OECD Countries," NBER Working Papers 7486, National Bureau of Economic Research, Inc.
    4. Oana Secrieru & Marianne Vigneault, 2004. "Public Venture Capital and Entrepreneurship," Working Papers 04-10, Bank of Canada.
    5. David Blanchflower & B Meyer, 1991. "A Longitudinal Analysis of Young Entrepreneurs in Australia and the United States," CEP Discussion Papers dp0055, Centre for Economic Performance, LSE.
    6. W. Allen & William Curington, 2014. "The Self-Employment of Men and Women: What are their Motivations?," Journal of Labor Research, Springer, vol. 35(2), pages 143-161, June.
    7. Mark Schreiner, 2002. "Aspects of outreach: a framework for discussion of the social benefits of microfinance," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 591-603.
    8. Inha Oh & Jeong-Dong Lee & Almas Heshmati & Gyoung-Gyu Choi, 2009. "Evaluation of credit guarantee policy using propensity score matching," Small Business Economics, Springer, vol. 33(3), pages 335-351, October.
    9. Garcia-Murillo, Martha & Velez-Ospina, Jorge Andres & Vargas-Leon, Patricia, 2012. "Where should governments invest? The impact of economic, political, social and technological factors on the formation of new firms," 23rd European Regional ITS Conference, Vienna 2012 60400, International Telecommunications Society (ITS).
    10. Schreiner, Mark & Woller, Gary, 2003. "Microenterprise Development Programs in the United States and in the Developing World," World Development, Elsevier, vol. 31(9), pages 1567-1580, September.
    11. Mark Schreiner, 2001. "Aspects of Outreach: A Framework for the Discussion of the Social Benefits of Microfinance," Development and Comp Systems 0109003, EconWPA.
    12. Mark Schreiner, 2001. "Evaluation and Microenterprise Programs," Development and Comp Systems 0108002, EconWPA, revised 27 Dec 2001.
    13. Allen, W. David, 2000. "Social networks and self-employment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(5), pages 487-501.

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