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Getting back into the Labor Market: The Effects of Start-up Subsidies for Unemployed Females

Marco Caliendo () and Steffen Künn ()

No 1260, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: A shortage of skilled labor and low female labor market participation are problems many developed countries have to face. Beside activating inactive women, one possible solution is to support the re-integration of unemployed women. Due to female-specific labor market constraints (preferences for exible working hours, discrimination), this is a difficult task, and the question arises whether active labor market policies (ALMP) are an appropriate tool to do so. Promoting self-employment among the unemployed might be promising. Starting their own business might give women more independence and exibility in allocating their time to work and family. Access to long-term informative data allows us to close existing research gaps, and we investigate the impact of two start-up programs on long-run labor market and fertility outcomes of female participants. We find that start-up programs persistently integrate former unemployed women into the labor market and partly improve their income situations. The impact on fertility is less detrimental than for traditional ALMP programs.

Keywords: Start-Up Subsidies; Evaluation; Long-Term Effects; Female Labor-Force Participation; Fertility (search for similar items in EconPapers)
JEL-codes: J68 C14 H43 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem, nep-lab and nep-ltv
Date: 2012
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Journal Article: Getting back into the labor market: the effects of start-up subsidies for unemployed females (2015) Downloads
Working Paper: Getting Back into the Labor Market: The Effects of Start-Up Subsidies for Unemployed Females (2012) Downloads
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