Social security etitlements and early-stage entrepreneurial activity; an empirical analysis

André van Stel, Peter Brouwer, Sander Wennekers and Jolanda Hessels (hessels@ese.eur.nl)

No N200423, Scales Research Reports from EIM Business and Policy Research

Abstract: This exploratory study focuses on the relation between social security entitlements and the rate of early-stage entrepreneurial activity at the country level. Using a sample of countries participating in the Global Entrepreneurship Monitor, we explore how various measures of entrepreneurial activity are related to 'replacement rates' in case of unemployment and illness/disability. The results of our empirical study indicate that social security entitlements of employees have a significant negative influence on the level of early-stage entrepreneurship at the macro level. However, the results of our study do not support the hypothesis that the relative level of social security benefits for self-employed, compared to that for employees, has an additional impact on entrepreneurial activity.

Pages: 23 pages
Date: 2005-03-10
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Persistent link: https://EconPapers.repec.org/RePEc:eim:papers:n200423

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