Is Starting a Business a Sustainable way out of Unemployment? Treatment Effects of the Swedish Start-up Subsidy

Lars Behrenz, L. Delander () and J. Månsson ()
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L. Delander: Linnaeus University
J. Månsson: Linnaeus University

Journal of Labor Research, 2016, vol. 37, issue 4, No 1, 389-411

Abstract: Abstract In this paper, we evaluate the Swedish self-employment start-up program based on a matching approach using data from administrative records. In addition to information of labor market history, traditional human capital and socio-economic variables, the data at hand also include information on the self-employment history of participants and nonparticipants as well as that of their parents. Our results indicate that the start-up subsidy program for unemployed persons is a successful program regarding the integration of the unemployed into the mainstream of the labor market. We find that, relative to members of control groups, participants, on average, have an increased probability of unsubsidized employment. Our analysis of different educational backgrounds presents the strongest employment effects for the low educated unemployed.

Keywords: Start-up subsidies; Self-employment; Direct employment effects (search for similar items in EconPapers)
JEL-codes: H43 J68 L26 M13 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (17)

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DOI: 10.1007/s12122-016-9233-4

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