Unemployment Insurance and Entrepreneurship
Link to article:
Authors:
Skogstrøm, Jens Fredrik og Knut Røed
Year:
2013
Reference:
Andre skrifter
IZA Discussion Paper no 7121
Summary
Based on administrative registers from Norway, we examine how unemployment insurance (UI) and active labor market programs (ALMP) affect the transition rates from unemployment to regular employment and entrepreneurship. We find that the entrepreneurship hazard is highly responsive with respect to UI incentives, and that the probability of starting up a new business increases sharply around the time of UI exhaustion. We also find that while participation in ALMP has a positive impact on the employment hazard, it has no effect on entrepreneurship. We speculate that this reflects the programs’ one-sided focus on job search rather than job creation.
JEL:
L26, J65, M13
Keywords:
entrepreneurship, self-employment, unemployment
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.: 201336
Frisch prosjekt: 6513 - Entrepreneurship and Gender in Norway - Entrepreneurship, Gender, and Social capital
