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Start-up subsidies for the unemployed: Opportunities and limitations

Marco Caliendo ()

IZA World of Labor, 2016, No 200, 200

Abstract: Turning unemployment into self-employment is a suitable alternative to traditional active labor market policies in many developed countries. Start-up subsidies can assist unemployed workers in setting up their own business. This option can be especially interesting for people whose work is undervalued in paid employment or in situations where job offers are limited because of group-specific labor market constraints or structural changes. Furthermore, start-up subsidies are potentially associated with a “double dividend” if the subsidized businesses prosper, strengthen the economy, and create additional jobs in the future.

Keywords: start-up subsidies; evaluation; labor market policies; deadweight effects; double dividend (search for similar items in EconPapers)
JEL-codes: J68 L26 M13 (search for similar items in EconPapers)
Date: 2016
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