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

Listed author(s):
  • Marco Caliendo
  • Steffen Künn

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.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.412688.de/dp1260.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1260.

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Length: 36 : Anh. p.
Date of creation: 2012
Handle: RePEc:diw:diwwpp:dp1260
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