Unemployment Insurance and Entrepreneurship
AbstractBased on administrative registers from Norway, we examine how unemployment insurance (UI) and active labor market programs (ALMP) affect the transition rates from unemployment to regular employment and entrepreneurship. We find that the entrepreneurship hazard is highly responsive with respect to UI incentives, and that the probability of starting up a new business increases sharply around the time of UI exhaustion. We also find that while participation in ALMP has a positive impact on the employment hazard, it has no effect on entrepreneurship. We speculate that this reflects the programs' one-sided focus on job search rather than job creation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7121.
Length: 25 pages
Date of creation: Jan 2013
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-19 (All new papers)
- NEP-ENT-2013-01-19 (Entrepreneurship)
- NEP-IAS-2013-01-19 (Insurance Economics)
- NEP-LAB-2013-01-19 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eberwein, Curtis & Ham, John C & LaLonde, Robert J, 1997. "The Impact of Being Offered and Receiving Classroom Training on the Employment Histories of Disadvantaged Women: Evidence from Experimental Data," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 655-82, October.
- Knut Røed & Lars Westlie, 2012. "Unemployment Insurance In Welfare States: The Impacts Of Soft Duration Constraints," Journal of the European Economic Association, European Economic Association, vol. 10(3), pages 518-554, 05.
- Parker,Simon C., 2004.
"The Economics of Self-Employment and Entrepreneurship,"
Cambridge University Press, number 9780521828130, April.
- Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521030632, April.
- Peter Kuhn & Herb Schuetze, .
"Self-Employment Dynamics and Self-Employment Trends: A Study of Canadian Men and Women, 1982-1995,"
Canadian International Labour Network Working Papers
31, McMaster University.
- Herbert Schuetze & Peter Khun, 1999. "Self-Employment Dynamics and Self-Employment Trends: A Study of Canadian Men and Women, 1982-1995," Department of Economics Working Papers 1999-05, McMaster University.
- Gaure, Simen & Roed, Knut & Zhang, Tao, 2007.
"Time and causality: A Monte Carlo assessment of the timing-of-events approach,"
Journal of Econometrics,
Elsevier, vol. 141(2), pages 1159-1195, December.
- Gaure, Simen & Røed, Knut & Zhang, Tao, 2005. "Time and Causality: A Monte Carlo Assessment of the Timing-of-Events Approach," Memorandum 19/2005, Oslo University, Department of Economics.
- Blanchflower, David G & Meyer, Bruce D, 1994. " A Longitudinal Analysis of the Young Self-Employed in Australia and the United States," Small Business Economics, Springer, vol. 6(1), pages 1-19, February.
- David Card & Raj Chetty & Andrea Weber, 2007.
"The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?,"
American Economic Review,
American Economic Association, vol. 97(2), pages 113-118, May.
- Card, David & Chetty, Raj & Weber, Andrea, 2007. "The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?," IZA Discussion Papers 2590, Institute for the Study of Labor (IZA).
- David Card & Raj Chetty & Andrea Weber, 2007. "The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?," NBER Working Papers 12893, National Bureau of Economic Research, Inc.
- Hans J. Baumgartner & Marco Caliendo, 2008.
"Turning Unemployment into Self-Employment: Effectiveness of Two Start-Up Programmes,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 70(3), pages 347-373, 06.
- Baumgartner, Hans J. & Caliendo, Marco, 2007. "Turning Unemployment into Self-Employment: Effectiveness and Efficiency of Two Start-Up Programmes," IZA Discussion Papers 2660, Institute for the Study of Labor (IZA).
- Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
- Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
- Brinch, Christian N., 2007. "Nonparametric Identification Of The Mixed Hazards Model With Time-Varying Covariates," Econometric Theory, Cambridge University Press, vol. 23(02), pages 349-354, April.
- Berglann, Helge & Moen, Espen R. & Røed, Knut & Skogstrøm, Jens Fredrik, 2011.
"Entrepreneurship: Origins and returns,"
Elsevier, vol. 18(2), pages 180-193, April.
- Berglann, Helge & Moen, Espen R. & Røed, Knut & Skogstrøm, Jens Fredrik, 2009. "Entrepreneurship: Origins and Returns," IZA Discussion Papers 4250, Institute for the Study of Labor (IZA).
- Berglann, Helge & Moen, Espen R & Roed, Knut & Skogstrøm, Jens Fredrik, 2009. "Entrepreneurship: Origins and Returns," CEPR Discussion Papers 7360, C.E.P.R. Discussion Papers.
- Simen Gaure & Knut Røed, 2007. "How Tight is the Labour Market?: Sources of Changes in the Aggregate Exit Rate from Unemployment across the Business Cycle," Journal of Business Cycle Measurement and Analysis, OECD Publishing,CIRET, vol. 2007(2), pages 155-173.
- Goffe, William L. & Ferrier, Gary D. & Rogers, John, 1994. "Global optimization of statistical functions with simulated annealing," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 65-99.
- Pedro Portugal & John T. Addison, 2008.
"Six Ways To Leave Unemployment,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 55(4), pages 393-419, 09.
- Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
- von Greiff, Jenny, 2009. "Displacement and self-employment entry," Labour Economics, Elsevier, vol. 16(5), pages 556-565, October.
- Røed, Knut & Skogstrøm, Jens Fredrik, 2010. "Creative Unemployment," IZA Discussion Papers 5373, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.