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Unemployment benefits crowd out nascent entrepreneurial activity

Author

Listed:
  • Koellinger, Philipp
  • Minniti, Maria

Abstract

Analyzing a cross-country panel of 16 OECD countries from 2002 to 2005, we find that higher unemployment benefits crowd out nascent entrepreneurial activity. Our results hold regardless of entrepreneurial motivation (necessity or opportunity) and entrepreneurial type (imitative or innovative).

Suggested Citation

  • Koellinger, Philipp & Minniti, Maria, 2009. "Unemployment benefits crowd out nascent entrepreneurial activity," Economics Letters, Elsevier, vol. 103(2), pages 96-98, May.
  • Handle: RePEc:eee:ecolet:v:103:y:2009:i:2:p:96-98
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    References listed on IDEAS

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    1. Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, February.
    2. André van Stel & Peter Brouwer & Sander Wennekers & Jolanda Hessels, 2007. "Social security arrangements and early-stage entrepreneurial activity," Scales Research Reports H200708, EIM Business and Policy Research.
    3. Simon C. Parker & Martin T. Robson, 2004. "Explaining International Variations in Self-Employment: Evidence from a Panel of OECD Countries," Southern Economic Journal, Southern Economic Association, vol. 71(2), pages 287-301, October.
    4. Philipp Koellinger, 2008. "Why are some entrepreneurs more innovative than others?," Small Business Economics, Springer, vol. 31(1), pages 21-37, June.
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    Citations

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    Cited by:

    1. Henrekson, Magnus & Stenkula, Mikael, 2009. "Entrepreneurship and Public Policy," Working Paper Series 804, Research Institute of Industrial Economics.
    2. Ferrante, Francesco & Ruiu, Gabiele, 2014. "Entrepreneurship. How important are institutions and culturally-based prior beliefs?," MPRA Paper 41915, University Library of Munich, Germany.
    3. Hamid Beladi & Saibal Kar, 2014. "Unemployment Benefits and Entrepreneurship," The Japanese Economic Review, Japanese Economic Association, vol. 65(1), pages 122-128, March.
    4. repec:gem:wpaper:1201 is not listed on IDEAS
    5. Fairlie, Robert W. & Fossen, Frank M., 2018. "Opportunity versus Necessity Entrepreneurship: Two Components of Business Creation," IZA Discussion Papers 11258, Institute for the Study of Labor (IZA).
    6. Ruta Aidis & Saul Estrin & Tomasz Mickiewicz, 2012. "Size matters: entrepreneurial entry and government," Small Business Economics, Springer, vol. 39(1), pages 119-139, July.
    7. Herrera-Echeverri Hernán & Haar Jerry & Estevez-Bretón Juan Benavides, 2014. "Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries," Global Economy Journal, De Gruyter, vol. 14(2), pages 1-36, April.
    8. repec:kap:sbusec:v:49:y:2017:i:4:d:10.1007_s11187-017-9857-7 is not listed on IDEAS
    9. Roy Thurik, 2014. "Entrepreneurship and the business cycle," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-90, October.
    10. Hernán Herrera Echeverri & Haar, Jerry & Juan Benavides Estévez-Bretón, 2013. "Foreign Investment, Institutional Quality, Public Expenditure And Activity Of Venture Capital Funds In Emerging Countries," DOCUMENTOS DE TRABAJO CIEF 011808, UNIVERSIDAD EAFIT.
    11. Tyrowicz, Joanna, 2011. "What distinguishes entrepreneurs? Evidence on the motives for self-employment," Economics Letters, Elsevier, vol. 112(3), pages 226-229, September.
    12. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.

    More about this item

    Keywords

    Entrepreneurship Business startups Unemployment benefits;

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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