Entrepreneurship among the Unemployed: the Effect of Unemployment Benefit

Wenjian Xu

No 5dahz, SocArXiv from Center for Open Science

Abstract: This paper probes the drivers and constraints that affect an unemployed individual's decision to start a business. Using linear probability model and survival analysis, we find that unemployment benefits have a significantly negative effect on switching from unemployment to self-employment and a positive effect on the duration before the switch, especially on the unincorporated self-employment. Moreover, unemployed individuals are less likely to start a business after being laid off, if their spouse does not have a job or most people expect the unemployment rate to go down in the coming 12 months.

Date: 2018-01-19
New Economics Papers: this item is included in nep-ent and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:5dahz

DOI: 10.31219/osf.io/5dahz

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