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Experimenting with Entrepreneurship: The Effect of Job-Protected Leave

Joshua Gottlieb, Richard Townsend () and Ting Xu ()

Working Papers from eSocialSciences

Abstract: This paper studies whether potential entrepreneurs remain in wage employment because of the danger that they will face worse job opportunities should their entrepreneurial ventures fail? Using a Canadian reform that extended job-protected leave to one year for women giving birth after a cut-off date, it studies whether the option to return to a previous job increases entrepreneurship. The results are driven by more educated entrepreneurs, starting firms that survive at least five years and hire paid employees, in industries where experimentation is more valuable. [Working Paper 22446]

Keywords: Entrepreneurship; Job-Protected Leave; wage employment; job opportunities (search for similar items in EconPapers)
Date: 2016-07
Note: Institutional Papers
References: Add references at CitEc
Citations: View citations in EconPapers (7)

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