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Stumbling blocks or stepping stones: The effects of promoting (youth) entrepreneurship

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  • Camarero Garcia, Sebastian
  • Henao, Leandro

Abstract

This study uses administrative data to evaluate a 2013 Spanish reform that subsidized social security contributions for young self-employed workers. Eligibility was granted to men younger than 30 and women younger than 35 with an active self-employment spell in February 2013. The policy did not extend self-employment duration or increase overall employment probabilities. Male entrepreneurs experienced no significant earnings changes, while women who returned to dependent employment within two years gained about 14% in monthly wages, mainly through transitions into higher-paying service sector jobs. These gains were concentrated among women at higher risk of unemployment, such as mothers and those in rural areas.

Suggested Citation

  • Camarero Garcia, Sebastian & Henao, Leandro, 2025. "Stumbling blocks or stepping stones: The effects of promoting (youth) entrepreneurship," Ruhr Economic Papers 1189, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:334529
    DOI: 10.4419/96973374
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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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