Unemployment insurance and entrepreneurship

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 7121

Classification and Topics

• Classification: Wirtschaft ; Entrepreneurship ; Unemployment Insurance; Severance Pay; Plant Closings ; New Firms; Startups
• Subject: entrepreneurship ; self-employment ; unemployment ; Arbeitslosenversicherung ; Arbeitsmarktpolitik ; Unternehmer ; Selbstständige ; Berufliche Integration ; Arbeitslosigkeit ; Norwegen

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Røed, Knut ; Baumgarten Skogstrøm, Jens Fredrik
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/69338
• Last update: 10.03.2025, 11:42 AM CET