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
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Citations: View citations in EconPapers (7)
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