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Unemployment Benefit and Nascent Entrepreneurship

Author

Listed:
  • Hamid Beladi

    (UTSA)

  • Saibal Kar

Abstract

A recent empirical note shows unemployment benefit crowds out nascent entrepreneurs. We provide theoretical support in favor of this interesting result. Over fairly general preference patterns we obtain a measure of the opportunity cost of entrepreneurs in the presence of unemployment benefit and derive conditions under which nascent entrepreneurship suffers as unemployment benefit rises. The measure may stimulate further empirical verifications.

Suggested Citation

  • Hamid Beladi & Saibal Kar, 2013. "Unemployment Benefit and Nascent Entrepreneurship," Working Papers 0219eco, College of Business, University of Texas at San Antonio.
    • Handle: RePEc:tsa:wpaper:0219eco
    as

    Download full text from publisher

    File URL: http://interim.business.utsa.edu/wps/eco/0045ECO-414-2013.pdf
    File Function: Full text Classification- J23, J65, M13
    Download Restriction: no
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