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Getting back into the Labor Market: The Effects of Start-up Subsidies for Unemployed Females

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  • Marco Caliendo
  • Steffen Künn

Abstract

A shortage of skilled labor and low female labor market participation are problems many developed countries have to face. Beside activating inactive women, one possible solution is to support the re-integration of unemployed women. Due to female-specific labor market constraints (preferences for exible working hours, discrimination), this is a difficult task, and the question arises whether active labor market policies (ALMP) are an appropriate tool to do so. Promoting self-employment among the unemployed might be promising. Starting their own business might give women more independence and exibility in allocating their time to work and family. Access to long-term informative data allows us to close existing research gaps, and we investigate the impact of two start-up programs on long-run labor market and fertility outcomes of female participants. We find that start-up programs persistently integrate former unemployed women into the labor market and partly improve their income situations. The impact on fertility is less detrimental than for traditional ALMP programs.

Suggested Citation

  • Marco Caliendo & Steffen Künn, 2012. "Getting back into the Labor Market: The Effects of Start-up Subsidies for Unemployed Females," Discussion Papers of DIW Berlin 1260, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1260
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    Cited by:

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    2. Marco Caliendo & Steffen K�nn, 2014. "Regional Effect Heterogeneity of Start-up Subsidies for the Unemployed," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1108-1134, June.
    3. Begoña Cueto & Matías Mayor & Patricia Suárez, 2017. "Evaluation of the Spanish flat rate for young self-employed workers," Small Business Economics, Springer, vol. 49(4), pages 937-951, December.
    4. Marco Caliendo, 2016. "Start-up subsidies for the unemployed: Opportunities and limitations," IZA World of Labor, Institute of Labor Economics (IZA), pages 200-200, March.
    5. Tina Haussen & Marcus Schlegel, 2020. "Unemployment reduction through solo self-employment: A gender question?," Empirical Economics, Springer, vol. 59(6), pages 3085-3105, December.
    6. Camargo, Juliana & Lima, Lycia Silva e & Riva, Flavio Luiz Russo & Souza, André Portela Fernandes de, 2018. "Technical education, noncognitive skills and labor market outcomes: experimental evidence from Brazil," Textos para discussão 480, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    7. Marco Caliendo & Stefan Tübbicke, 2020. "New evidence on long-term effects of start-up subsidies: matching estimates and their robustness," Empirical Economics, Springer, vol. 59(4), pages 1605-1631, October.
    8. Ruud Gerards & Riccardo Welters, 2020. "Liquidity Constraints, Unemployed Job Search and Labour Market Outcomes," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 625-646, June.
    9. Manuela Deidda & Adriana Di Liberto & Marta Foddi & Giovanni Sulis, 2015. "Employment subsidies, informal economy and women’s transition into work in a depressed area: evidence from a matching approach," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.
    10. Marco Caliendo & Stefan Tübbicke, 0. "New evidence on long-term effects of start-up subsidies: matching estimates and their robustness," Empirical Economics, Springer, vol. 0, pages 1-27.
    11. Chiara Natalie Focacci, 2020. "“You reap what you sow”: Do active labour market policies always increase job security? Evidence from the Youth Guarantee," European Journal of Law and Economics, Springer, vol. 49(3), pages 373-429, June.
    12. Marco Mariani & Alessandra Mattei & Lorenzo Storchi & Daniele Vignoli, 2017. "The ambiguous effects of public assistance to youth and female start-ups between job creation and entrepreneurship enhancement," Econometrics Working Papers Archive 2017_04, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    13. L. Behrenz & L. Delander & J. Månsson, 2016. "Is Starting a Business a Sustainable way out of Unemployment? Treatment Effects of the Swedish Start-up Subsidy," Journal of Labor Research, Springer, vol. 37(4), pages 389-411, December.
    14. Stjepan Srhoj & Ivan Zilic, 2020. ""Fine...I'll do it myself": Lessons from self-employment grants in a long recession period," Working Papers 2001, The Institute of Economics, Zagreb.

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    More about this item

    Keywords

    Start-Up Subsidies; Evaluation; Long-Term Effects; Female Labor-Force Participation; Fertility;

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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