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

Sebastian Camarero Garcia and Leandro Henao

No 1189, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

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.

Keywords: entrepreneurship; youth unemployment; regression discontinuity; propensity score matching (search for similar items in EconPapers)
JEL-codes: J21 J24 J68 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:334529

DOI: 10.4419/96973374

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