Die reformierte Gründungsförderung für Arbeitslose: Chancen und Risiken

Marco Caliendo and Alexander Kritikos

No 856, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: Support schemes for unemployed persons aiming to become self-employed have been recently reformed several times. In 2003, the "start-up-subsidy" (Existenzgründungszuschuss) was added to the existing "bridging-allowance" (Überbrückungsgeld) and the two programs to-gether led to a strong increase in the number of supported start-ups. In 2006 both instruments were merged to the "start-up allowance" (Gründungszuschuss). Since the bridging allowance has been evaluated as effective and efficient and the start-up-subsidy reached new target groups, the latest reform shows several short-comings. First of all, an end of the start-up boom is to be expected with the newly attracted target groups not being reached anymore. Secondly, the design of the "start-up allowance" is suboptimal, where efficiency losses can be expected if participants aim at maximizing social transfers. First empirical evidence from data of 2007 supports most of these expectations.

Pages: 24 p.
Date: 2009
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Related works:
Journal Article: Die reformierte Gründungsförderung für Arbeitslose – Chancen und Risiken (2009)
Working Paper: Die reformierte Gründungsförderung für Arbeitslose: Chancen und Risiken (2007)
Working Paper: Die reformierte Gründungsförderung für Arbeitslose: Chancen und Risiken (2007)
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